‘The Prime Minister for medical research’ ... Tony Abbott at the Murdoch Children’s Research Institute in Melbourne. Picture: Tim Carrafa Source: News Corp Australia

“The package we announced yesterday is an improvement on the package we announced on Budget night. This is Australian democracy at work,” he said at a press conference at the Royal Children’s Hospital in Melbourne.

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“What we announced on Budget night was good policy; what we announced yesterday was better policy,” he said.

When asked about the likelihood of a government information campaign, he said he wouldn’t “rule it out”.

“What people will get from us when it comes to information is that it will be fair and we will be frugal,” he said.

Yesterday the government ditched plans for the mandatory co-payment and announced an optional $5 payment to be charged at the discretion of doctors to make up for a reduction in the rebate they’ll receive from Medicare.

Mr Abbott asked: “Why should people like Bill Shorten and myself expect to go to the doctor and not pay a cent?” “If people like Bill Shorten and myself go to the doctor, why shouldn’t we face a modest $5 co-payment?”

Labor says the modified plan is a backdoor way of introducing a co-payment while the Greens have accused the government of forcing doctors to do its “dirty work”.

But crossbenchers have been more supportive of the plan, making it less likely the changes will be struck down in the Senate. Health Minister Peter Dutton was confident crossbenchers would back the new co-payment.

The big backdown ... Health Minister Peter Dutton and Prime Minister Tony Abbott announcing the new policy in Canberra yesterday. Source: News Corp Australia

Pensioners and other concession card holders, children under 16, veterans and those living in aged-care facilities will be exempt from the charge.

Mr Abbott denied the new policy was a backflip, but said it was a sign of an effective Senate — which had been blocking the budget measure.

He said price signals were not a bad thing and the new “modest” charge would ensure Medicare flourished in the future and would “make the realisation of the Medical Research Fund more sure”.

Mr Abbott spruiked the establishment of the fund, saying in Australia “We don’t always appreciate our intellectual achievements”.

He said he was proud and pleased to be a “Prime Minister for medical research”.

“You have a right to expect better health in the future,” Mr Abbott told Australians on Wednesday.

“You have a right to expect better treatments, more cures in the future, and that is what yesterday’s announcement will make more sure and more certain.”

The Prime Minister also hinted at continuing tensions with the Australian Medical Association, saying they were “claiming credit for the changes” but “suggesting there hasn’t been consultation”.

“You can’t have it both ways,” he said.

Earlier, AMA Vice President Dr Stephen Parnis criticised the government’s communications over the co-payment issue.

“We had a phone call half an hour before yesterday’s press conference; that’s the kind of consultation we’ve had,” he told Sky.