FED: No moral pressure for rich to belong to private fund

AAP General News (Australia)
12-10-1998
FED: No moral pressure for rich to belong to private fund

CANBERRA, Dec 10 AAP - There was no moral pressure for well-off Australians to hold private
health insurance, the Public Health Association of Australia said today.

Association national president Fran Baum said the public healthcare system provided the
bulk of health care.

"Medicare was established as a universal scheme and not a safety net," Professor Baum said
in a statement.

"The Medicare levy requires the rich to contribute more.

"There is no moral pressure under Medicare for the wealthy to belong to private health
insurance schemes.

"To suggest otherwise is to misconstrue the original purpose of Medicare."

Prof Baum said the federal government had failed to make a convincing case for allocating
$1.6 billion to a 30 per cent rebate for people holding private health insurance.

There was no evidence the rebate would achieve better health.

"This is more a tax break for private health insurance members than a contribution to
improving public health," she said.

The Senate is expected to vote tonight on the rebate bill but the outcome remains uncertain
as negotiations continue on possible amendments.

AAP kaw/mfh/was/kr

KEYWORD: INSURANCE PUBLIC

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