JOHN MENADUE. Medicare, Private Health Insurance and the ALP

In my article, ‘Down a different path in Melbourne: how Medibank was conceived’ written in 2000 for the Medical Journal of Australia (see link below), I described the history from 1967 to 1975 which led to Medibank/Medicare.  In that article, I highlighted one issue that drove Gough Whitlam’s determination to establish Medibank/Medicare. His concern was that “The Liberal and Country party Coalition’s voluntary health insurance scheme, supported by taxpayer deductions was wasteful and inequitable.”

The package of measures that introduced Medibank/Medicare abolished the taxpayer subsidy for private health insurance. When the Hawke government introduced a revised Medicare in 1983 it removed the private health insurance subsidies that the Fraser government had introduced.

The ALP today doesn’t understand the threat to Medicare of the $11 billion per annum  government subsidy to private health insurance. I drew attention to this in an earlier blog, ‘The Labor Party does not understand its own creation‘.


Down a different path in Melbourne:  how Medibank was conceived’.   Menadue article (1)


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1 Response to JOHN MENADUE. Medicare, Private Health Insurance and the ALP

  1. Jaquix says:

    I think Labor does understand that the subsidy for private health insurance is something which should be abolished. Trouble is, they cant reform everything all at once. Look at the fuss over negative gearing. I actually thought they considered halving the subsidy, even that would be better than the current inequitable system. Or have a set amount per person, not based on income. I imagine its still on a list somewhere….

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