Federal Health Minister Peter Dutton has revealed the Government is considering exempting the elderly from the Medicare co-payment proposal.
Photo: Mr Dutton says the Government is negotiating with the AMA about its plan and costings. (AAP: Alan Porritt)
The Government does not have enough support to get its proposed $7 GP fee through the Senate.
The Australian Medical Association (AMA) has given the Government an alternative co-payment model, which the ABC understands would exempt some groups, including pensioners.
Mr Dutton says the Government is negotiating with the AMA about its plan and costings while also consulting crossbench senators.
He says some senators have taken "strategic positions" opposing the co-payment plan.
"I think we just can't pretend that everything can be for free, so those that can't afford the $7, I accept that we need a safety net," he told 2UE.
"That's what we've built into the system, but if there are further changes that we can make, that people believe will make it fairer, I'm happy to listen ... the objective must be to strengthen Medicare."
He says the AMA have put forward an alternative plan "which changes the way in which our co-payment works".
"We haven't publically commented on that and I've said out of respect to the AMA I wouldn't comment," he said.
"We're seriously having a look at what their suggesting but some of the other crossbench senators have had suggestions to make as well.
"I believe that we can negotiate this ... we want to have a strong Medicare and if we don't make the changes now, I just don't think, that we can expect to have a world class health system in 10 or 20 years' time."
Federal Treasurer Joe Hockey yesterday said he would forge ahead with plans for the co-payment after rejecting advice from former Liberal treasurer Peter Costello to scrap it.
On the ABC's AM program this morning, Mr Hockey rebuffed his predecessor who declared the $7 GP co-payment would not pass the Senate.
Mr Costello said Mr Hockey should cut his losses and drop the planned budget measure.
"It's not good advice because frankly our budget is part of an overarching economic action strategy that has a number of different component parts," Mr Hockey said.
"Putting a price signal in relation to visits to the doctor and ensuring that the Medicare system is sustainable is a key part of that program. We are facing a Medicare system that is growing in excess of 7 per cent per annum."
He says the Medicare GP co-payment is not dead.
"Don't count your chickens before they're hatched," he said. "I think people are getting a little ahead of themselves."
