Leaks and scuttlebutt mar government's Medicare plans

The new year has failed to do much for Tony Abbott's political fortunes, with a damaging leak about a clash with Treasurer Joe Hockey over Medicare.

As Mr Abbott attended a graduation ceremony for Indigenous chefs, it became apparent someone had stuck the knife into the PM, or Mr Hockey.

The leak suggested they clashed over the $20 rebate cut for short GP visits, a policy the Treasurer is said to have dismissed as crazy.

Mr Hockey neither confirmed nor denied the reports in a radio interview today.

"No, don't believe everything you read," he said.

"I'm not going to engage in discussion on gossip."

There was neither confirmation nor denial from ministerial colleagues.

"I'm not going to go into details about any discussions between senior cabinet ministers," foreign minister Julie Bishop said.

Social services minister Scott Morrison said: "I'm not going to engage in those sort of suggestions and scuttlebutt in the press".

Mr Hockey indicated the original decision wasn't smart, saying it's sometimes better to back down than go ahead with a plan with bad ramifications.

And he has justified health and welfare reforms by saying future mortality rates demand spending restraint.

"It's highly possible a child is being born that's going to live to 150," he said.

Opposition leader Bill Shorten questioned if people were to live to 150, why had the government implemented other, inconsistent policies.

"I suspect our treasurer has lost the plot," he said.

The Coalition backbench continues to question Government decision making, but former GP Andrew Laming says so-called cowboy doctors have to be reigned in.

"You can't see a dozen people an hour and get quality care," said the member for Bowman.