Claims universal health care will be killed with the $7 co-payment to visit the GP have been described by Liberal Member for Gilmore Ann Sudmalis as "absolute rubbish".
Labor Member for Throsby Stephen Jones made the claim to hundreds of Illawarra residents at Wollongong's Save Medicare rally on Saturday.
"Make no mistake about it, this proposal is going to do exactly what the Coalition wants it to do. It's going kill bulk billing and it's the thin edge of a very thick wedge which will kill Medicare," Mr Jones told them.
On Sunday Ms Sudmalis, who was not at the rally, denied the co-payment would spell the end of Medicare.
"That's absolute rubbish, it's another fear tactic," she said.
"We are absolutely supportive of universal healthcare. That is a myth, there is absolutely no way that is going to happen."
Ms Sudmalis defended the widely criticised budget measure, claiming both negative and positive feedback about it from her constituents.
"I always knew that there were going to be some people who would feel very uncomfortable about this [and] there were emails in my system [to that effect]," she said.
"There are also emails on the other side of the equation from people who have said they understand it had to happen, and they're OK with this.
"If you don't put something in the system now, then in 10 years' time the system won't be available to anybody and the fees that you pay will be astronomical. This is an insurance for the future."