Victor P Taffa

When Medibank was introduced by the Whitlam Labor Government in 1973 it heralded in a new way of health wellbeing. When Medicare was introduced by the Hawke Labor Government in 1984 it was simply a rebranding of Medibank.

Since Federation in 1901, State Government’s have funded and managed hospitals. Along with Medibank came the abolition of hospital boards in New South Wales and Queensland. Stalinist Area Health Service administration replaced hospital boards and this situation is what we face today.

Having experienced firsthand the Public Hospital System, the idea of funding sickness and not wellness is what is wrong with our hospital system. The focus is on waiting lists in Emergency Departments.

Current funding arrangements should remain intact for all States and Territories and the Commonwealth should simply increase the Medicare Levy to 2.5%.

At the very least the ratio between the Commonwealth and States/Territories for funding should be 50:50 in line with Victoria Premier John Brumby’s model.

According to the Australian Institute of Health and Welfare expenditure on disease and injury in Australia for year 2004-05 as published on 27 April 2010 showed that health expenditure for each age group ranges from $2,223 per year for girls/boys aged 5 to 14 years to $8,030 per year for women/men aged 75 to 84 years.

While these figures are from 2004-05 it highly unlikely that the cost of illness to the nation has been reduced.

The answer lies in finding cures for illnesses through an increase in the Medicare Levy. Illnesses such as Breast Cancer, Leukaemia, Quadriplegia, Depression, Diabetes, HIV etc….could be a thing of the past with a serious commitment from the Commonwealth via the Medicare Levy.

The effect of increasing funding into medical research to find cures for illnesses may not shorten hospital waiting lists in time for the 2010 Federal election however in the long term the change will be noticeable.

According to the White Hat website Australia has led the world in medical research in the following areas:

• Electronic Pacemaker
• Physiotherapy
• Penicillin
• lithium
• In vitro fertilisation
• The Bionic Ear- the cochlear implant
• Aspro
• Begg Orthodontics
• The Humidicrib
• Initial suite of instruments for Microsurgery
• Relenza
• Spray-on-skin for burns victims
• The world’s first vaccine to prevent cervical cancer
• Discovery of the bacterium which causes stomach ulcers and gastritis
• Polio vaccine

What this shows is that if Australia has previously lead the world in medical research that there is no reason why Australia cannot lead the world again.

The Medicare Levy should not only be increased to fund medical research but Hospital Boards reintroduced to manage hospitals. The effect of this will be to fund wellness and not sickness.

This policy initiative will save lives unlike the Commonwealth Roof Insulation Scheme that resulted in deaths.

This policy initiative does not require a new health commission to distribute funds since the Medicare system is already in place and overheads involved will be insignificant. Monies distributed for medical research will not be gobbled up in administrative costs.

This policy would not require a potentially divisive, expensive referendum.

When the Greiner/Murray Coalition Government took office in New South Wales in 1988 the 3×3 fuel levy was introduced and funds channelled directly into road funding. 3×3 was 3 cents per litre for 3 years.

In 1995 the New South Wales Labor Government took office and the 3×3 levy was simply redirected into consolidated revenue and not road maintenance.

Other direct funding measures for projects include then New South Wales Labor Premier Neville Wran introduced ‘Premer State Bonds’ in 1980 to fund capital works. Similarly as contained in www.isput.com.au also includes a funding formula that involves Railway Bonds.

For Federal Governments’ to continue to simply fund sickness is not in the wellbeing of all Australians.

The challenge is for either Prime Minister Kevin Rudd or Opposition Leader Tony Abbott to adopt this policy initiative for the 2010 Federal election and find cures for many illnesses for the long term so as to cut hospital waiting lists and ensure that our ageing population can realise better health outcomes.