Read The Times Australia

Daily Bulletin

Patients paying more for health care as government tightens belt

  • Written by: The Conversation
imageAs the Australian government tightens its belt, consumers end up spending more of their own money on health.Nikki Short/AAP Image/AAP

Australians are picking up some of the slack of government belt-tightening by paying more for health, with experts concerned this could reduce the equity in Australia’s health system, a new report has revealed.

The Commonwealth government’s warnings of the health system being unsustainable have been used to justify it stripping A$2 billion from the 2015 health budget over the next five years, raising the sceptre of increasing bills for every Australian.

An Australian Institute for Health and Welfare report released today shows the non-government share of health expenditure grew by more than double that of both commonwealth and state governments in 2013-14.

Commonwealth spending rose to nearly A$64 billion in 2013-14, up 2.4% from the previous year. While state and territory governments spent A$41 billion – up by about 2% from 2012-13.

But non-government spending surged by five percentage points, to nearly A$50 billion in 2013-14, generally in line with the upward trend for the funding source over the last decade.

Professor of Health Economics at the University of Technology Sydney, Rosalie Viney, said the general trend was “concerning”.

“Government expenditure has remained steady compared with private expenditures and if this translates into out-of-pocket expenses for consumers, it’s likely to increase the inequity in our system.”

Spending by individuals accounted for 55%, or $A27.5 billion, of non-government funding. The report showed some of this was made up of payments for medications not subsidised by the Pharmaceutical Benefits Scheme (PBS).

Professor Viney said some of the increase in private spending also related to government changes in means testing of health insurance and tax rebates.

Across all funding sources, that include government, insurers and out-of-pocket expenses, nearly A$155 billion was spent on health in 2013-14. This was up by 3.1% from the previous year. Around A$6,639 was spent on health per person on health in 2013–14, A$94 more than the year before.

Despite this, Senior Research Fellow in Health Economics at Curtin University, Dr Richard Norman, said the growth in health spending was relatively slow in the reporting year.

“The rate of increase in expenditure over the year is a little higher than over the previous year but is below the long term trend. Even if the level of service stays the same for each type of person, you would expect some positive increase in total spending because the population ages and older people on average use more health services,” he said.

“So, I think the figures might reasonably be interpreted as suggesting that the system is achieving a balance between cost containment and delivery of good care.”

But Dr Norman added a focus on expenditure alone showed only half of the overall picture.

“Patient-reported outcomes would be really valuable alongside this kind of data, to identify if the money is being spent in a way that actually benefits individual patients or not,” he said.

The report showed Australia’s health expenditure accounted for 9.8% of GDP in 2013–14, which, despite the slow growth, was up from 9.7% the year before. This was because health spending grew faster than the overall economy.

International comparisons however, showed Australia’s proportion of health spending to GDP was half that of the United States. Professor Viney said this showed universal health care was a more efficient way of running a system.

“The US is spending way more as a proportion of GDP, almost twice as much per person. And it’s not buying better health outcomes, it’s just paying more for them - and more inequitably, I might add,” she said.

“One of the things it shows is that a universal health care system that’s got a high proportion of government funding tends to be a better way of managing health expenditure.”

Authors: The Conversation

Read more http://theconversation.com/patients-paying-more-for-health-care-as-government-tightens-belt-47917

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...