Health minister Sussan Ley announced the government has scrapped plans to implement a GP Payment.
“It is clear the proposal for a co-payment or a $5 cut are not popular with health professionals and will not proceed,” Ley said.
“We cannot introduce reforms without the support of the public and health professionals,” Ley said.
Late last year medical and political groups criticized the Coalition Government for considering a Medicare co-payment scheme.
The Coalition struggled to get their original plans for a $7 GP payment through the Senate last year, finally abandoning the proposal for a modified version in December.
This revised structure would have seen doctors face a $5 cut to their Medicare rebates for some patients, although they could have charged patients to make up the gap.
Abbott said the measure would have saved $3.5 billion over the budget forward estimates period.
Both of these policies have been taken off the table, however, “that doesn’t mean we aren’t intent on realising sustainability,” Ley said.
The planned freeze on indexation for all Medicare rebates through to 2018 will also go ahead and is expected to save more than $1 billion over four years.
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