Page 235 - Week 01 - Thursday, 18 February 1993
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Commonwealth and States on health policy areas. By signing the Medicare agreement, the ACT will gain at least an additional $21m in the first year in a combination of direct Commonwealth funding of health and reimbursement from other States. The exact financial benefit to the ACT depends on activity levels in all States as a finite pool is to be shared. The funding arrangements are complex and involve the following:
Transfers from States' base health funding grant to the bonus pool; the ACT will contribute $5m.
Establishment of new bonus pool arrangements for increased public provision and for lower than national average per capita use of medical benefits; the ACT will receive $10m, of which $2m is from the medical benefits bonus pool.
New incentives funding for a range of health system reforms based on an ACT-specific strategic plan; estimated ACT impact is $1m per annum.
Reimbursement from other States for cross-border services; the final amount is expected to be in excess of $15m net per annum, but will depend on the agreement negotiated and the number of cross-border patients treated.
I should add that part of the arrangements reached ensures that where there is difficulty in the parties reaching agreement on this particular matter the Commonwealth has agreed that it will intervene and arbitrate an outcome. That was something that the ACT felt was necessary to ensure the security of ACT funding. One can imagine that if we get involved in a donnybrook with one of the other States over funding, it could go on for some time.
Mr Humphries: It is not going to matter after 13 March. Don't worry about it. What a waste of time!
MR BERRY: Mr Humphries expresses the opinion that this might change after 13 March. Heaven help us, because we know from experience that there is likely to be a sneak attack after the election of any Liberals. One could never be surprised at what they might do to us. In the case of the honourable agreement that has been reached between us and the Federal Government, it is expected that throughout the life of the agreement the Commonwealth will honourably deal with the issue of negotiations between the States on this cross-border trading. Finally, the arrangements involve the following:
Adjustments to the distribution of financial assistance grants between States based on changes to Grants Commission methodology; no impact is expected on the ACT in relation to that matter.
The agreement also commits the ACT to further work with the Commonwealth and other States and Territories on policy issues during the period of the agreement and to implementing reforms resulting from the national health review. The principles and commitments of Medicare require complementary ACT legislation. Of course, Mr Deputy Speaker, the principles of Medicare have been incorporated in the recent Health Bill which has been put before the Assembly for consideration.
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