EMBARGO: 5:00 pm

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PRIME MINISTER

FOR MEDIA SUNDAY, 30 AUGUST, 19 81

ELECTORATE TALK

(The weekly"Prime Ministerial electorate talk over 3HA Hamilton  today is given by the Minister for Health, The Hon. M.J.R. MacKella'r)

I want to speak to you briefly about the new health insurance  arrangements which start on Tuesday, 1 September. I think that  by this stage most people will be quite clear in their minds  as to what they should do to protect themselves against health

costs from that date.

Very briefly, the arrangement is that unless you are eligible  for free care (and over three million people will be) you will  need to take out health insurance. Those eligible for free  care include pensioners and sickness beneficiaries who have a  pensioner health benefits card, people in special need - and

these are people on specified low incomes, people on unemployment  benefits on certain income levels, migrants and refugees for  their first six months in this country.

For those who need to take out private health insurance, the  health insurance funds have been announcing details of their  benefits offered and the contribution rates charged. It is pleasing  to note that the net cost of such health insurance will be cheaper

under the new arrangements than it is now, due to the effect of  the taxation rebate made by the Government. The first of September  will see the' start of a system of health funding that will preserve  the element of choice by both the providers and the users of health

care, it will protect those in special need against health care  costs, it will require State Governments to take up their proper  constitutional responsibilities for health services, and it will  encourage a sense of personal responsibility in using and paying

for health care.

The new arrangements reflect the Commonwealth Government's commitment  t o 'small Government'. This is important if people are to be free  to decide how they will spend their money rather than having the  Government take the decisions for them through heavier taxation  burdens. This is a basic difference between the philosophies of

the Government and the Labor Party, who are apparently still committed  to a monopolistic, centralised, tax-financed, Government health scheme  I say "apparently" committed because so far the Labor Party is a  Party without a health policy.

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The fact that they do not have a health policy goes a long way towards  explaining the "spoilt child" behaviour of the Opposition during these  last few weeks in attempting to spread misunderstandings within  the community. This is unfortunate, because in any change, people  need to consider what they need to do to take best advantage of the  coverage available.

We believe that the new health arrangements will serve the country .   well - preserving and encouraging the best elements and standards of  our high quality health care delivery system. We also believe that Â·   the new arrangements will avoid the destructive effects of so-called

"free" health schemes. There is no such thing as a free health scheme.   The Government will use community funds, gathered through general  taxation,.to fully protect the less well-off, the elderly, and others  in our community in special need. For the majority of people who do  not fall into these categories, the Government will heavily subsidise  private health insurance rates. These subsidies are expressed by way

of taxation rebates, and-direct financial grants through medical,  benefits and subsidies to private hospitals. .1 believe that  this kind of approach represents a reasonable and a proper balance  between the Government's role and the right to individual choice

and responsibility.

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