This is how that mysterious indexation formula is calculated


It seems a simple question: just what is this ‘indexation formula’ the government will use to ‘end’ the freeze of Medicare rebates next year?

Even if it is lower than CPI — the measure most of us use to ensure our pay keeps up with the cost of living — surely this mystery formula is not rooted in government accountancy voodoo?

We asked Dr Stephen Duckett how the formula was derived. But despite being director of the Grattan Institute health program, one of Australia’s best health policy experts and a former secretary of the