1 December 2009 
 
Medicare Select is not the solution to improving Australia's health care system, the 
Australian Healthcare and Hospitals Association (AHHA) warned today. 
 
AHHA agrees with many of the issues identified in a Medibank Private-commissioned 
report by Medicare Select proponents Christine Bennett, Just Stoelwinder and Mary 
Foley, reported in the media today. We need to focus more on prevention, we need to 
respond better to individual consumer needs and we need to coordinate and integrate 
health care across sectors, Ms Prue Power, AHHA Executive Director said today. 
 
However, we must address these issues without going down an untested and risky 
path, such as Medicare Select, which could end up costing the community millions 
without delivering better health care. The proposal, as outlined in the National Health 
and Hospitals Reform Commission Report, could potentially railroad us into a US-style 
health system in which the rich get the best care from the best clinicians while the poor 
get the leftovers from a depleted and stressed public system. 
 
Do we as a country want to face the prospect of major for-profit health insurers 
controlling healthcare for all Australians? AHHA is concerned that this proposal could be 
a Trojan Horse leading to privatisation of the public healthcare system Australians 
cherish and that it ignores the evidence-based solutions available which we know will 
address the problems identified in this report.   
 
For example, we know that with more funding public hospitals can meet the rising 
community demand for care, and that taxpayers want their taxes spent on accessible 
and high quality healthcare. This funding should be strategically targeted to increase 
planned bed numbers for identified populations, replace and update ageing 
infrastructure, address workforce issues and implement interoperable electronic records 
and systems. 
 
We also know from research and reviews that some interventions to reduce pressure on 
hospital emergency departments (EDs) work, especially multifaceted interventions aimed 
at improving ED services and other hospital services simultaneously. We also need to go 
beyond the hospital doors and look at how we can improve the care provided to people 
before the enter hospital and after they leave. The Australian Institute of Health and 
Welfare estimates that over 500 000 people every year turn up at hospitals with 
problems which could have been prevented or managed in the community. This number 
could be significantly reduced if more resources were directed into preventive health 
programs, step-down facilities, rehabilitation services, community-based support and 
aged care.  
 
The issues identified by this Medibank Private report can be addressed with revisions to 
the health system we already have. COAG needs to focus on bringing all stakeholders 
together to implement evidence-based solutions to these problems instead of looking to 
radical and risky changes such as Medicare Select, Ms Power said. 
 
   
Medicare Select not 
the answer 
For further information/comment:  
Ms Prue Power 0417 419 857