The Prime Minister introduced a “new and improved” system to bolster Medicare which he said was better than the policy he had just scrapped.

MEDICARE CO-PAYMENT DEFEAT: Dutton says gov will look at ‘every option’

MEDICARE FAILURE: Co-payment rejected by Senate

The new policy includes a discretionary $5 copayment and guarantees the aged and disadvantaged would still have access to bulk billing.

It also has provisions for quality improvement demands on doctors.

“We had good policy in the first place. Now we have better policy,” Mr Abbott told reporters. This raised the notion that the Senate’s refusal to pass copayment legislation had done the Government a favour.

Announcement made...Health Minister Peter Dutton and PM Tony Abbott holding a press conference in the Prime Minister's Courtyard at Parliament House in Canberra. Picture: Supplied. Source: News Corp Australia

“We are always looking to do things better ways,” Abbott said.

Under the new system, which will come into effect from July 2015, doctors will have the option to charge a $5 co-payment, but children, pensioners, veterans and nursing home patients will be exempted.

PATIENT FEAR: doctors text patients about Medicare co-payment

Mr Abbott said the new package had significantly improved the government’s co-payment measures, while at the same time maintaining the desired price signal.

“But I do want to stress ... bulk billing stays for young people and for pensioners, and the co-payment is at the option of the doctor,” he said.

Mr Abbott also stressed that to get the full Medicare rebate, doctors would have to see patients for a minimum of 10 minutes — up from the current six minutes — under what he called a “quality control measure”.

He told reporters that doctors will continue to be encouraged to bulk bill pensioners and children aged under 16, while adults who do not carry a concession card will be charged at the doctor’s discretion.

“Only for adults who aren’t on concession cards will there be the option of the doctor charging at their discretion a $5 co-payment,” Mr Abbott said.

Appearing on the ABC, Peter Dutton speaks to Leigh Sales on the GP co-payment. Courtesy: 7:30 Report, ABC

Cuts to Medicare rebates for blood tests, X-rays and scans have been abandoned under the changes.

Mr Abbott said this showed the government was listening to community concerns.

The new measures will provide the government with $3.5 billion in savings over the forward estimates.

The Medical Research Fund — which the $7 copayment was to have funded — is still a component of the new package.

Health Minister Peter Dutton appeared on ABC’s 7.30 program to talk about the changes, insisting that the Government had found the right balance with this new system.

When pressed by host Leigh Sales about the $5 charge that non concession card holders will face he remained adamant the fee, if passed on by Doctors, was a step in the right direction.

“It’s senseless to pretend that you can say to every Australian coming through the door of your Dr that it’s going to be for free,” Dutton said.

“We believe that people on higher incomes, people in your situation or mine, that we do ask for a $5 co-payment but that we haven’t mandated it.”

Dutton also stressed that the savings made by the $5 fee will be directed into the Medical Research Future Fund, something University of Queensland Professor Nicholas Fisk said was important to maintain.

“I’m very pleased to see that vulnerable and disadvantaged patients will be protected under these new proposals”, Mr Fisk said.

“Having a sustainable, world-class medical research system will be key not only to the health of us all but to future generations.

“The big return to the Australian economy from the fund will be an improvement to patient and clinical care both in hospitals and in the community.”

The breakdown

BEFORE

- $7 GP fee

- $7 fee for pathology

- $7 fee for scans and X-rays

- Pensioners and children pay fee for only 10 visits

- Medicare rebate cut by $5

- Doctors must see patients for minimum six minutes

AFTER

- Medicare rebate cut by $5

- No change to scans and medical tests

- Pensioners and children under 16 exempt from cuts

- Doctors can charge general patients optional $5 fee

- Medicare rebates frozen until July 2018

- Doctors must see patients for minimum of ten minutes

Labor opposes new co-payment package

Bill Shorten has responded to the Abbott GP co-payment saying it is a broken promise.

Federal Opposition Leader Bill Shorten said that despite Tony Abbott’s concessions, “this is still a tax on going to the doctor”.

“There is still a broken promise, and Tony Abbott will still try again, when he has the numbers, to increase taxes going to the doctor,” Mr Shorten told reporters in Canberra.

Mr Shorten said the ushering in of the co-payment was a “broken promise” which was “bad for the universal protection of Medicare”.

“Sick people should not be discouraged from going to the doctor when they need to,” he said.

He said the government had snuck the “tax” through “just like they did the petrol tax”.

Shadow Minister for Health, Catherine King, said the Abbott government has launched an “attack on our fundamental Medicare health scheme”.

“This is a GP tax by stealth,” she said. “We welcome the concessions made on vulnerable patients, but this is still a fundamental attack on Medicare”.

“It was not even announced when Parliament was still sitting, because the Abbott government knows this is a GP tax by the back door.”

Maintaining the pressure ... Federal Opposition Leader Bill Shorten says the Medicare co-payment is still a “tax on going to the doctor”. Picture: Stephen Laffer Source: News Corp Australia

Measure opposed since May Budget

The government announced plans for the co-payment in the May budget.

It was a surprise move from the government and seven months later became one of the political “barnacles” Mr Abbott acknowledged had to be removed.

It was opposed by Labor, the Greens and crossbenchers in the Senate as well as doctors.

Health Minister Peter Dutton said the new measures carried a “strong balance of fairness”.

Mr Abbott said, “I think (doctors) will acknowledge this is a significantly better package than what was brought at budget time.

“The decision crystallised late last week and was supported by the Cabinet this morning.”

Mr Dutton said that doctors would “acknowledge this is a significantly better package than what was brought at Budget time.”

“Sure this is a change but a very carefully targeted change which is all about giving the families in Australia the best possible deal,” he said.

The stubborn refusal to budge on the $7 copayment was necessary to placate cross bench senators and calm unrest on the matter in his own party.

How social media responded

Social media was quick to respond to Mr Abbott’s announcement, with politicians, doctors and policy makers jumping to Twitter immediately:

Have your say about this announcement. Is a $5 payment still too much?