Millions to lose mental healthcare from 31 December following Medicare cuts

Australian Psychological Society

The APS is disappointed by the Albanese Budget just as the community enters the most stressful time of year with demand at record levels.

APS President Tamara Cavanett was deeply concerned with the lack of investment and planning for mental health needed saying "mental illness and suicide costs the nation $220bn per year but the Federal Government continues to avoid structural reforms in mental healthcare."

The Productivity Commission has also found that small and targeted investment would improve the federal budget through cost savings of $18bn per year in forgone health, social and judicial expenses.

"Despite record demand for psychologists and worsening cost of living pressure there is no plan to increase accessibility and affordability for people in crisis and prevent long term pain to patients and taxpayers."

One in three psychologists are unable to take on new patients. Before the pandemic it was 1 in 100.

More than one million subsidised Medicare sessions remain scheduled to be cut from December 31, causing severe anxiety among psychologists and patients. The program costs just over 1% of the total spend per annum on mental health-related services.

"During a mental health crisis we must strengthen Medicare, not weaken it. Patients face significant costs even with the subsidy, so cutting it completely for millions of eligible Australians is putting salt on the wound."

"It is also bitterly disappointing to see aged care residents and workers suffer with serious cuts to mental health services from next year, a backflip on the Royal Commission's finding to have aged care residents eligible for subsidised psychological treatment". Aged care residents have four times more suicidal ideation, four times more depression and nine times more anxiety than those in community care.

APS President Tamara Cavenett reiterated the economic reasoning underpinning new investment saying "a strong economy is predicated on a mentally able workforce. Investing in psychology improves the budget, increases total workforce participation and productivity, reduces wait times and save lives."

"Prevention and early intervention are the most cost-effective treatment methods and should be prioritised when spending is tight. Investing in psychologists in schools can return up to $10.50 for each dollar invested alone."

Approximately 50 per cent of adult mental illness begins before 14 years of age and research has found 40 per cent of young Australians attempted self-harm or were thinking about suicide during the pandemic.

Despite these extraordinary figures, the Federal Government is meeting only 35 per cent of its psychology workforce target, the greatest shortfall of any mental health profession, which is expected to get far worse in the next few years. 45 per cent of psychologists are over 45 years old, with 25 per cent over 55.

Several crucial reforms have been avoided, namely:

  • Making the 10 additional Medicare psychology sessions permanent for all Australians
  • Making residential aged care psychological services a permanent feature of Medicare
  • Having a 1:500 psychologist to student ratio at all public, private and independent schools
  • Funding university places on par with GPs, veterinarians, dentists and psychiatrists
  • Replicating GP regional relocation incentives for psychologists
  • Streamline referral requirements to alleviate pressure on patients and GPs
  • Increasing the Medicare rebate for patients, and
  • Making placement psychologists eligible for Medicare rebates.
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