FED: Govt to oppose Democrats compromise plan on insurance

AAP General News (Australia)
12-08-1998
FED: Govt to oppose Democrats compromise plan on insurance

CANBERRA, Dec 8 AAP - The federal government today rejected an Australian Democrats
compromise proposal on the 30 per cent private health insurance rebate, saying it would press
on with its original model.

A spokesman for Health Minister Michael Wooldridge said the government would not be
compromising on its non-means tested rebate.

"The Democrats' proposal would actually make things worse," the spokesman told AAP.

"It would have the effect of drawing in more low-income people who tend to be high users
but doing nothing to make sure that the risks are spread over a whole community by getting
more of the high income and middle income people in.

"We'll be pressing on. We hope we'll get the legislation through this week."

The Democrats proposed limiting the rebate to families on annual incomes of $50,000 and
singles on annual incomes of $30,000, and using the $800 million savings for several public
health programs.

Labor, the Democrats, and Greens oppose the government's rebate, while independents Brian
Harradine and Mal Colston have expressed concerns about it.

The government needs two extra votes to pass its legislation in the Senate which is due to
begin debating the bill tonight.

Dr Wooldridge is to meet Senator Colston this afternoon, although the precise nature of the
meeting remains unknown.

The minister's spokesman would not comment on the meeting, but said no other meetings with
senators were planned, although the government remained happy to speak to anyone about its
proposal.

AAP kaw/mfh/it/br

KEYWORD: INSURANCE WOOLDRIDGE (CARRIED EARLIER)

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