A doctors' group is backing the Rudd government's plan to raise the Medicare levy surcharge thresholds, putting it at odds with other medicos.
The Doctors Reform Society intends telling a Senate committee hearing on Wednesday that any reduction in taxpayer support of private health insurance will be welcomed.
The Rudd government wants to raise the Medicare levy surcharge threshold for individuals from $50,000 to $100,000, and for couples from $100,000 to $150,000.
But the Society says the reforms don't go far enough and has called for surcharge exemptions for high-income earners, who take out private health insurance, to be axed.
"People on incomes of $300,000 are getting tax breaks of $3,000 to enable them to buy private health insurance which they would buy anyway," society spokesman Tim Woodruff said.
"That is nothing more than upper-class welfare."
The government also needed to address a chronic shortfall in funding of the public hospital system, Dr Woodruff said
The public system had been underfunded by $2.2 billion annually during the past five years.
The government should also consider removing the rebate for extras cover and decrease the 30 per cent private health insurance rebate.
"Then we might return to an equitable health system which doesn't require a healthy credit card just to access proper health care," Dr Woodruff said.
