Prime Minister Anthony Albanese has announced a £8.5 billion expansion of bulk billing in Australia, aiming to make millions of additional GP visits free. News reports highlight that the plan, set to be a key policy in the upcoming election, seeks to lift bulk-billing rates from 77.7% to 90%, easing financial pressure on families and improving access to healthcare.
Largest Medicare Investment in 40 Years
This initiative represents the biggest funding boost to Medicare in four decades. Over the next four years, the government will inject £7.9 billion into incentive payments for GPs who bulk bill all patients, rather than charging out-of-pocket fees.
The plan is expected to result in 18 million additional free GP visits per year and aims to save Australian families up to £859 million annually in consultation fees.
The policy extends a measure introduced in the 2023 Budget, which tripled financial incentives for GPs who bulk billed children, pensioners, and concession card holders. From November, this incentive will apply to all patients, encouraging more doctors to offer fully bulk-billed services.
Addressing GP Shortages and Funding Disparities
To counter a growing shortage of healthcare professionals, the plan includes £617 million to train an additional 5,500 GPs and nurses over the next decade. This measure is crucial as the number of practising GPs struggles to keep pace with patient demand.
The Australian Medical Association (AMA) has estimated that general practices are £8.3 billion worse off than they would have been had Medicare rebate levels kept up with inflation. Over time, this funding gap has contributed to a decline in bulk-billing rates and higher patient costs.
Currently, the national average out-of-pocket fee for patients who are not bulk-billed is £47 per visit.
Political Implications and Medicare Reform
Health Minister Mark Butler positioned the policy as a stark contrast to the Coalition’s past Medicare policies, criticising the six-year Medicare rebate freeze implemented under previous Liberal governments.
He accused opposition leader Peter Dutton of attempting to abolish bulk billing by proposing a GP tax and stripping billions from Medicare through the rebate freeze.
The Royal Australian College of General Practitioners (RACGP) had previously urged the government to extend the bulk-billing incentive to patients under 34, as young Australians are the most likely to delay seeing a doctor due to financial constraints.
The organisation estimated that this policy change could increase bulk-billing rates to 85% and result in an additional 6.2 million free GP visits annually.
Impact on Regional and Rural Healthcare
The incentive payments under this plan will vary depending on location, helping to address healthcare disparities between urban and rural areas. Currently, Western Australia has the second-lowest bulk-billing rate in the country, at 70.5%, with average out-of-pocket costs of £46.76 per appointment.
Under the new incentive payment structure, a standard GP consultation under 20 minutes will continue to attract a Medicare rebate of £42.85, but clinics that bulk bill all patients will receive additional funding.
Urban practices in Perth will receive £69.56 per consultation, while regional clinics will get £80.71. In rural areas, the Medicare payment will nearly double, reaching £86.91 for remote practices.
