Study exposes big holes in Australian health system

CANBERRA - Poverty and disadvantage killed 19,000 Australians and cost the nation more than A$3 ($3.23) billion in just two years despite its status as one of the world's richest and healthiest nations, a study has concluded.

The Royal Australasian College of Physicians study also warns the health gap between rich and poor is widening.

"Compared with other developed nations, Australia has failed to reduce these inequities," college president Dr Jill Sewell said. "In many instances they are actually worsening."

The report follows the announcement of an 8 per cent increase in private medical insurance premiums, raising fears that many more middle- and low-income Australians will be forced out of the private system.

The Government has used rebates to encourage people to take out private insurance to ease pressure on the overloaded public system, but there are now fears higher premiums will renew pressure on lengthy hospital waiting lists.

The college's report, released yesterday, said Australia consistently rated in the top 10 of OECD nations in most areas of health care.

The World Health Organisation ranked Australia's health care as the second best in the world, when measured by overall life expectancy and the number of years its citizens can expect to enjoy without disability.

An average Australian woman born in 2000 can expect to live 82 years, 74 without disability, and a man can expect a lifespan of 77 years, 69 without significant disability.

But the college said the benefits of health care had not been shared equally, with serious disparities for Aboriginals and people living in socio-economically disadvantaged areas.

It said the health of Aboriginals remained a blot on the nation's character and no similar health gap existed in any other developed country with a significant indigenous population.

New Zealand, Canada and the United States had all reduced the gap.