Posted January 09, 2020 14:24:10In 2016, the Australian Government’s national healthcare program for aged care was estimated to have cost $10.4 billion.
That was the equivalent of $10,000 per family.
But by the end of 2018, it was projected to have grown by $1.2 billion, or $5,500 per family per year.
At the same time, the federal budget was reduced to $8.5 billion.
As the Commonwealth was unable to keep up with the costs, it decided to make Medicare the health service for everyone aged 65 years and over.
That meant the budget would have to be significantly reduced to keep it in balance.
It is now estimated that by 2019-20, the program will have only about $1 billion left.
That is less than half of what the Government estimates Medicare will need to continue providing a universal and affordable national health service.
The situation for Medicare is far worse than the previous Labor government.
Since 2008, the Medicare budget has grown by just 0.1 per cent.
In 2020-21, that will fall to just 0,000.
That is just 0 per cent of what Medicare is expected to spend by 2020-20.
It has left the federal government without a reliable and affordable source of funding to pay for its national health services.
The Coalition is proposing to make some savings.
But in doing so, it will likely reduce funding for some key services, including the national health insurance program, Medicare, the national mental health service and the National Disability Insurance Scheme.