The Strategy of ‘Creep’ – 2009 Update
[A article researched by Sheldon Maher OAM – VVFA Lismore NSW] Up dated Jan 2009
Sickest Veterans Now out of Pocket $162.00 in 2009
From early last century till 1997, there was a clear understanding, a clear principle, that war veterans received free medical treatment for their war caused illnesses and injuries.
How did it come about that the sickest of our war veterans will, this year, will be slugged $162.00 from their pensions to help pay for the medical treatment of these illnesses and injuries? A 523% increase over 12 years, a average increase of 43% per year.
And that’s not the end of it.
The government has decreed that the amount sick war veterans are out of pocket for medical treatment will increase each year so that by 2009, these veterans will have to find at least $162.00 from their pensions.
The question is; ‘How did this come about without the ex-service community strongly and loudly objecting?
The answer is that the government has ‘crept’ changes into the pharmaceutical system. Each change by itself has seemed too small to worry about. It’s not till you look back and add up all the incremental changes that you realise that the changes are significant and that we have been ‘conned’.
First, let’s look at how governments progressively provided medical treatment for war veterans.
- 1914 An Act for the provision of war pensions was passed. The Act provided for medical treatment of war-caused disabilities as well as the payment of war pensions.
- 1943 The introduction of the provision of free medical or hospital treatment for all disabilities for members in receipt of 100% or higher war pension. Along with ex-service preference in employment and a time limit for recognition of wives as dependants was set at 15 years for WW2 members.
- 1953/54 The introduction of the National Health Act. At this time special provisions were made to ensure that the Repatriation Pharmaceutical Benefits Scheme was kept to guarantee free medicine for Veterans.
- 1959 The extension of free medical treatment to war widows, children of deceased veterans.
- 1980 Australian mariners who were prisoners-of-war and veterans with service related amputation or loss of vision in one eye, who did not qualify on other grounds, were made eligible for free medical treatment for all conditions.
- September 1991. Pharmaceutical allowance to cover the cost of pharmaceutics was introduced to eligible veterans at the rate of $2.60 per week. This included a safety net provision. The Government at this time gave the reason was to control the “ over use “ of drugs. But as prescriptions cost $2.60 each, and were free after the 52nd prescription, so veterans were not out of pocket.
In 1997 the rot set in.
- January 1997 – The government introduced a 50 cent surcharge on the first 52 Chemist scrips each year. This meant the sickest of our war veterans, those needing at least one prescription a week, were out of pocket $26.00 for the year.
- After 1997 the government increased the cost of Chemist scripts every year.
- January 2002 – So by 2002, the Pharmaceutical allowance was $2.90 a week with a Chemist script costing $3.60 each for the first 52. Our sickest veterans were now paying a surcharge of 70 cents on the first 52 scripts so they were out of pocket $36 for the year.
- January 2005 –By January 2005, the Pharmaceutical allowance was $2.90 a week with a Chemist script costing $4.60 each for the first 52. Our sickest veterans were now paying a surcharge of $1.70 cents on the first 52 scripts so as to be out of pocket $88.40 for the year.
- January 2006 –By January 2006, the Pharmaceutical allowance was $2.90 a week with a Chemist script costing $4.70 each for the first 54. Our sickest veterans are now paying a surcharge of $1.80 cents on the first 54 scripts so as to be out of pocket $102.40 for the year. The number under the number of scrips under the Safety Net to increase by 2 each and every year.
So, in summing up so far, the government’s introduction of a 50cent surcharge on veterans Chemist scripts was simply the thin end of the wedge which has now grown to $1.80. Now our sickest war veterans must pay $102.40 toward the treatment of their war caused disabilities.
But what about the future?
It seems the government is wary of increasing the surcharge above $1.80. It may have gauged this is about as high as we will tolerate without making a fuss. So it has changed its tactics. They have decided instead of a direct increase in cost, to increase the number of scripts we receive before they become free. In other words, our pharmaceutical allowance will to partly cover the cost of 54 scripts but the scripts don’t become free till we have purchased more than that number.
Here’s how it will work:
- 1 January 2006. Increase from 52 to 54 scrips before scripts are free. The sickest of our war veterans will now be out of pocket $104.20 for the year.
- 1 January 2007. Increase from 54 to 56 scrips. Veterans cost $123.60 pa.
- January 2008. Increase from 56 to 58 scrips. Veterans cost $139.20 pa.
- 1 January 2009. Increase from 58 to 60 scrips. Veterans cost $162.00 pa
Now for the really mean bit. The Government then changed the rules of the safety net. From 1 January 2006 repeat prescriptions within 20 days will not count towards the safety net or be free under the safety net if you have reached it.
This measure as inconvenience veterans in Rural and Remote areas who only have access to a Chemist shop once every two weeks or so. They need repeat prescriptions to ensure that they don’t run out of medications between visits.
Since January 1, 2006 many have been slugged by the 20 day rule with out knowing. The use by the very sick of the “Webster System” has necessitated in some cases of the Chemist having to dispense under the 20 day rule in order to supply medication in the Webster packs.
Others need to have their scrips filled prior to travel as many Chemist shops in smaller areas do not stock a full range of medications. Others may simply lose or misplace medications, mishaps which might even be related to their war caused conditions.
So little by little, the principle of free medical treatment for war caused illnesses and injuries has been undermined; the pace of the ‘creep’ slow enough not to ‘scare the horses’. But look back at what has happened. The government has so undermined to principle of free medical treatment that it now seems an ancient artefact, a curiosity of the past. We have been ‘conned’.
It is well worth noting here that people in receipt of medical treatment under Workers Compensation court orders, do not have to pay a cent of the cost of Chemist scripts, the Insurance Company paying for them in full. Why not war veterans?
There are several other issues of concern that have come to our notice now regarding the operation of the Repatriation Pharmaceutical Benefits Scheme. I am pleased to advise that these issues are currently been followed up by our National Committee to the Minister and the President of the Repatriation Commission.
When I first raised this matter in 1996, I was told by some that I was talking through my hat, well due to inaction veterans are now paying through their pockets, in fact quite hard with a total 523% increase. A average of 43% per year.
Whilst we should be angry with the government for this undermining of a just principle we should not take it out on the poor chemist. He or she is not responsible. If you are angry, let your local Federal member know. Perhaps you could show or send him this article with a few well chosen words.
Free medical treatment for all conditions including Pharmaceuticals and medical aids with out any co payment, safety net or so called Pharmaceutical Allowance for all Veterans who are in receipt of at least 100 percent of the general rate of pension and War Widows. [This includes those in receipt of a pension at the Intermediate, Special TPI or EDA rate of pension]
Free medical treatment for all accepted conditions including Pharmaceuticals and medical aids with out any co payment, safety net or so called Pharmaceutical Allowance for Veterans who are in receipt of a pension less than100 percent of the general rate of pension.
Remind the Government that with the 1953/54 introduction of the National Health Act, that at this time special provisions were made to ensure that the Repatriation Pharmaceutical Benefits Scheme was kept to guarantee free medicine for Veterans. This was changed in 1991, 1997 and 2005.