Bowing to a backlash that clearly took the coalition by surprise, the Abbott government has capitulated and dropped plans to slash the Medicare rebate by $20 for short visits to the doctor.  Doctors loathed the idea, and Labor – fearing the costs would be passed onto Australians as a “stealth tax” – vowed an all out fight over it.

“I have become aware of significant concerns and unintended consequences of changes to Medicare rebates scheduled to begin on Monday,” Health Minister Sussan Ley announced to reporters in Melbourne, blaming the concern on “misinformation”.

“As a result, I'm announcing today that the changes to level A and B Medicare consultation items will not commence on Monday as planned. 

“The Government is taking them off the table.”

The plan would have slashed $20 off of the rebates paid to doctors for consultations of between six and ten minutes.  Just yesterday, Prime Minister Tony Abbott was holding on to his claim that it would improve medical care by de-incentivising the practice of booking numerous short appointments to boost the number of taxpayer subsidies received.  The Australian Medical Association says doctors disagreed, and many considered it a backdoor attack on Medicare.