Gillard rejects super-for-healthcare plan

Julia Gillard has rejected a report calling for three per cent of superannuation to be set aside. Source: AAP

THE federal government has knocked back a suggestion for part of superannuation to be set aside to fund healthcare.

The report by the Committee for Economic Development of Australia (CEDA) says the ever-increasing costs of providing health services will create a budget crisis for future governments.

It suggests covering these costs by quarantining at least three per cent of the guaranteed superannuation rate.

When asked by reporters on Wednesday whether the government would consider such a move, Prime Minister Julia Gillard simply said "no".

Health Minister Tanya Plibersek said she had not read the report, but said the increasing demand for healthcare was not an issue.

"We need to make sure that we provide those services in a cost-effective way," Ms Plibersek told reporters in Melbourne.

"But the simple fact that demand for medical services has increased ... I don't think is a problem."

The report, titled Healthcare: Ration or Reform, says the health system is plagued by blame shifting between levels of government and focuses on processes rather than patients.

"The result is poorer and relatively more expensive outcomes for patients and few incentives to achieve ongoing innovation," it says.

"The funding model used to support health care needs to be individual focused rather than institution or process-focused."

The report also says Australia is paying too much for generic drugs, a problem which could be addressed through reforms to the Pharmaceutical Benefits Scheme.

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