The following articles were published in "The Guardian", newspaper
of the Communist Party of Australia in its issue of Wednesday,
May 1st, 2002. Contact address: 65 Campbell Street, Surry Hills.
Sydney. 2010 Australia. Phone: (612) 9212 6855 Fax: (612) 9281 5795.
CPA Central Committee: <[EMAIL PROTECTED]>
"The Guardian": <[EMAIL PROTECTED]>
Webpage: http://www.cpa.org.au>
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1. Health crisis. Public Is Best
"Potential catastrophe", said Australian Medical Association President
Kerryn Phelps describing Monday's collapse of Australia's largest medical
insurer, UMP. UMP is applying to the court for the appointment of a
provisional liquidator next week. Pursuing its crazy "market forces"
policies the Federal Government is looking for a way to pass the buck and
impose extra costs on doctors and patients. Doctors may be forced to abandon
bulk-billing as one consequence. Some doctors may shut down their practices
if they are unable to find a new insurer.
By Jules Andrews
"Essential health services are now at risk. Services will suffer, it will
happen from today unless we get a very rapid and effective response from
Federal Government", said Ms Phelps.
UMP provides medical indemnity insurance for over 32,000 doctors in
Australia, including 90 per cent of those practising in NSW, and 100 per
cent of those in rural and regional South Australia.
Ms Phelps' statement was backed up by New South Wales Health Minister Craig
Knowles, who convened a meeting of Sydney's top neurosurgeons last Monday.
"Unless John Howard gives them some sort of ironclad guarantee about their
insurance cover by the close of business today, they will be ceasing work in
the private sector and will only be able to undertake emergency work in
Sydney's public teaching hospitals", he said.
Doctors will continue to work in public hospitals because their medical
indemnity is covered under each State Government's Treasury-managed funds
plan.
Stephen Smith, Labor spokesperson for health said, "It's clear that in the
aftermath of UMP going into provisional liquidation, the Government has no
plan. 32,000 doctors are in crisis because they don't know that their
insurance policy is worth the paper that it is written on".
Statements by Federal Assistant Treasurer Senator Helen Coonan indicate that
the Federal Government has no real plan to meet the situation. She has made
one statement after another which, on analysis, is little more than empty
words that do not protect doctors or patients from future claims.
The Commonwealth Government has said it will work urgently with the
provisional liquidator to prevent any disruption of medical services to the
community. But what happens in the immediate future and what happens when
present insurance policies come up for renewal around the end of June?
How are claims that may arise in the years ahead to be guaranteed? None of
these questions have received a clear answer from the Federal Government.
On Tuesday morning this week, there were media reports of some doctors and
dentists restricting which types of cases they would treat.
Although the Federal Government announced it would provide a $35 million
guarantee to cover claims up to June 30 the medical profession remains
highly sceptical and anxious about their position. (Ansett employees were
also given "iron clad" guarantees which left many employees high and dry.)
The suggestion of a levy arose when Senator Coonan also said, "The
government expects medical practitioners to play a prominent role in working
through the current difficulties, which may include making a financial
contribution as appropriate."It is likely that some doctors will pass on
this additional cost should it be imposed, by putting up patient fees.
The Royal Australian College of General Practitioners made this clear in a
statement which said they were "concerned that this will place an additional
burden on practices which will eventually be borne by the patient."
Dr Tim Woodruff, President of the Doctors Reform Society, also confirmed
this. He said: "Firstly, the decreased availability of some services like
obstetrics, especially in rural and remote areas, will mean patients simply
won't be treated", said Dr Woodruff
"Secondly, the increased premiums doctors have to pay across the board, will
mean doctors will be looking to increase their charges. That will mean that
doctors who currently bulk bill will feel increasing pressure to stop bulk
billing."
"The government has watched bulk billing rates slowly decline since it came
to office. It doesn't care. The result: further burdens patients as they
struggle to be able to afford the many and increasing out-of-pocket expenses
of basic medical care."
As the Federal Government refuses to increase the Medicare rebates paid for
medical services, so the "gap" between what the patient coughs up at the
doctor's surgery and the amount they get back from Medicare grows.
This will lead to more demands for private health insurers to cover the
"gap", and many more patients turning to private insurance, which is what
the Coalition has wanted since day one.
The Federal Government's lack of action on the issue can only be seen as
part of its deliberate campaign to strangle Medicare to a slow and painful
death.
"Patients will suffer", said Dr Woodruff. "The Government will watch out of
pocket expenses rise. And their aim of a two tiered health scheme in
Australia where the rich can afford excellent health care and the rest must
settle for second best, will move that little closer to reality."
In a statement to The Guardian, CPA General Secretary, Peter Symon said that
the collapse of UMP, the sixth insurance company to go under in the last few
years, shows again that capitalism is incapable of meeting the needs of the
people, in this case, the health needs of the community.
"There is a stark comparison between the public health system which provides
a universal service without feesand meets claims for doctor negligence and
the private system so beloved of the Howard Government", Mr Symon said.
"The irresponsbile attitude of the Federal Government has been brought out
dramatically in a statement just made by John Howard.
"He said: 'No we're not playing catch up at all, because we can't act in a
way that forces the hand of a company when you've got potential claims of
three or four of $500 million, you've got to be very careful, otherwise
you'll be accused of meddling in the private business affairs of companies'.
"There we have it", said Mr Symon. "Private companies are sacred and the
health needs of the community are to be sacrificed to 'the private business
affairs of companies'.
"Putting the blame on doctors, Peter Costello said: 'The doctors were
responsible for setting their own premiums and meeting their own payouts and
they've got themselves into financial trouble'.
"These statements clearly show the thinking and the callous,
don't-care-a-damn attitude of Government leaders", said Peter Symon.
"It is the private health system and, in particular, the private insurance
companies that are failing and there is a desperate crisis that could bring
calamity to many who require medical attention.
"The Government is already propping up the private health business system to
the tune of billions of dollars a year, through the health insurance rebate
and Medicare payments. The long-term solution does not lie in handing over
more money to the private system to ensure it can function.
"Unless and until the provision of health services is re-established as a
public service - as against profit-driven businesses -- periodical crises
will continue. The present competent public health system shows that public
is best.
"The aim of the Government, however, is to destroy the public health system
and hand the health of everyone over to the incompetent and hugely costly
private profiteers, manipulators and speculators in community health",
concluded Mr Symon.
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