Can our government afford to continue supporting two tiers of services? They want to make our services universal and this isn't being well received by those who will see an increase in their private health insuance premiums.
The industrious and wealthy should see something for their tax dollars, but PAYE taxpayers provide 85% of government revenue. I blame the Howard government for trying to split this 85/15% into equality for a 60/40% population. Trying to correct this imbalance now is going to be almost impossible.
Private hospitals are essential of course, but the extra money needed to keep them buoyant for those who can pay has detracted from the public hospital system which means those who can't pay, either go without essential surgery or are put on a waiting list for possibly years. The specialists naturally gravitate towards the private system which means their availability in the public system has waned considerably.
REGIONAL private hospitals may close within five years if health insurance changes pass through parliament, causing more stress for families trying to pay their mortgage.
As nurses prepare to march on independent MP Rob Oakeshott's electorate office today, voters such as Bruce Smith are expressing anger at proposed changes to the private health insurance rebate.
"I wouldn't classify myself as wealthy by any means," said Mr Smith, 43, who lives with his wife and two children in Mr Oakeshott's electorate on the mid-north coast. "We just keep on getting taxed."
The electrician is one of 2.4 million Australians facing higher premiums if the plans to means-test the 30 per cent private health insurance rebate get through parliament.
Mr Oakeshott and fellow NSW independent MP Tony Windsor have been warned of an exodus of private medical specialists from regional cities if the rebate is means-tested.
Nurses from local private hospitals will march on Mr Oakeshott's electorate office - but their protests may be too late. The government is confident Mr Oakeshott will support the reforms along with other crossbench MPs - a move that would help fill a multi-billion-dollar budget black hole.
The health changes, which have been rejected twice, are worrying some Labor MPs, who say families will struggle to pay higher premiums.
"Thinking that $160,000 is a lot of money is not true," said one Labor MP.
If legislation passes through parliament the means test will kick in from July 1, meaning singles earning above $83,000 and families earning more than $166,000 will have to pay more for their health cover.
The new hit to families comes after other moves by the government to rein in middle-class welfare, including freezing indexation of family welfare benefits and cutting the baby bonus.
Prime Minister Julia Gillard evoked the idea of a fair go as she claimed the changes were about "fairness".
Opposition Leader Tony Abbott said the health changes showed only that "Julia Gillard doesn't understand Sydney and the cost of living pressures people face".
Senior private health executives are warning the government that the changes will force many people to give up their insurance, leading to a reduction in medical specialists in regional centres.
"If you lose the PHI rebate, you will probably lose the private hospital," Annette Arthur, chief executive of the Tamara Private Hospital in Tamworth, said. "Tamworth is very much at risk."