The Abbott government is weathering a storm of opposition to its proposed budget items that would see the introduction of co-payments for GP consultations, pathology and radiology test orders, and pharmaceutical prescriptions. Even the most centrist of commentators are expressing concerns that the risk of unintended consequences of these measures are a real and present danger to the health of Australians.

Co-payments might add revenue and demand, and hence Medicare expenditure, in the short term at best. However, had the proposal been submitted as an assignment by a student of macro accounting, it might scrape in a pass grade. It represents a fail, however, of sound health economic policy, for it is too blunt a tool to reduce with scalpel precision those supposed “unnecessary” GP visits, tests and medicines.

Instead, we know from international evidence that necessary care will drop, and with it will go opportunities for ­prevention and low-cost disease management. That other advanced economies, with high performing efficient health care systems, are moving in the opposite direction and strengthening the foundations of access to primary health care should be strong cause for modest, impartial reflection.

But what if the government had up its sleeve a series of yet unutilised, Plan B, policy options that represent a win-win for them and their constituents, with the potential to save money (more than the co-payments will generate) while at the same time improving the healthcare of Australians?

Surely, no government could be this fortunate. Well, the Abbott government most certainly is.

For more details, go to: http://www.afr.com/p/business/healthcare2-0/health_system_deserves_keener_scalpel_WdUjyLv9ZYKnksVo4E07OM