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)