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2011-03-16

Jeremy Sammut has good points

Comments on Jeremy Sammut “Cure Medicare mess”, 16/03/2011, http://www.theaustralian.com.au/news/opinion/cure-medicare-mess/story-e6frg6zo-1226022070655

The following idea of Jeremy Sammut's is worth considering:

"Bulk-billing should be scrapped and the budget savings used to establish a national system of individualised Health Savings Accounts. Consumers will become cost-conscious and overuse will be minimised when they spend their own money on GP and other non-hospital services."

Two points are important in terms of health care. Firstly, its expenses cannot be open ended and funded freely by government alone, because it has some characteristics of luxury goods besides its normal functions of cure needs. There must be effective constraints on them.

Secondly, the best health care system is to have each person in charge of his or her own care needs and the priority of health care spending with a budget constraint that is funded through taxation. Each one can be different and has different needs. It is impossible for a government to be in charge and to provide tail-made health care for everyone.

Rapid growth in healthcare spending is a big problem for governments. Population aging will add further pressure to it. The government should reform the current Medicare system. And it’d be better to start it as early as possible.

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