Abbott the Boastful forgets his own Medicare safety net history

The Daily Telegraph reported on 1 April 2012 that: Senior Gillard government ministers have confirmed that while "no final decisions have been made" the government is considering a nip and tuck to the generous Medicare safety net that has faced multi-million-dollar cost blowouts.

Also on 1 April Opposition leader Tony Abbott told 9 News:  "The Medicate safety net was put in place by me. I have the copyright on the Medicare safety net. It is very, very good policy and it should not be further damaged by this government."

This is a typically inaccurate statement by Abbott. There was a safety net written into the Australian Medicare universal health care scheme before he became Federal Minister for Health and Ageing in the Howard Coalition Government. A position he held from 7 October 2003 until 3 December 2007.

In 2003 the existing safety net thresholds were $306.90 for concession card holders and other low income families, and $716.10 for all other families and individuals, indexed annually.

In November 2003 the Extended Medicare Safety Net was proposed. It came into effect in March 2004 and, provided for safety net thresholds of $300 for concession card holders and low income families and $700 for all other individuals and families. In other words, after thresholds had been reached Medicare paid for 80% of any future out-of-pocket costs for out-of-hospital Medicare services for the remainder of the calendar year.

In the lead up to the October 2004 federal election Health Minister Abbott was interviewed by ABC TV Four Corners on 6 September and gave a guarantee that the safety net threshold would not be changed:

TICKY FULLERTON: Will this Government commit to keeping the Medicare-plus-safety-net as it is now in place after the election?
TONY ABBOTT: Yes.
TICKY FULLERTON: That's a cast-iron commitment?
TONY ABBOTT: Cast-iron commitment. Absolutely.
TICKY FULLERTON, REPORTER: 80 per cent of out-of-pocket expenses rebatable over $300, over $700?
TONY ABBOTT: That is an absolutely rock solid, ironclad commitment.

However, just six months later in April 2005 the Howard Government was announcing that Medicare Safety Net threshold levels would increase from $306.90 to $500 for concession card holders and other low income families, and from $716.10 to $1000 for all other families and individuals from 1 January 2006.

In that same month the Howard Government provided figures showing a further increase in projected Safety Net expenditure and the Prime Minister told ABC radio that if the current threshold levels were maintained, the cost of the Safety Net would be $1.65 billion over the next four years (to 30 June 2009)—almost four times the original projections.

By 1 January 2007 Tony Abbott had again raised the safety net thresholds to $358.90 (from $345.50) for the Original Safety Net category and $519.50 (from $500.00) for the lower Extended Safety Net category and $1,039.00 (from $1,000.00) for the upper category.

All of which can hardly be characterized as Howard or Abbott being fiscally responsible in relation to health care policy and doesn’t support Abbott’s present boastful tone.

For the record. Under the Gillard Labor Government Medicare benefits for out-of-hospital services are usually 80-85 per cent of the schedule fee, except for GP consultations where the Medicare rebate is 100 per cent of the schedule fee.

In 2012 the Original Safety Net threshold for all Medicare card holders is $413.50 and the Extended Medicare Safety Net threshold for concession cardholders and people who receive Family Tax Benefits (Part A) is $562.90. For all other singles and families the annual threshold is $1,198.