Yahoo Finance Major $189m Medicare change to make doctor's visits cheaper from today: 'Real cost-of-living relief'
The NSW government's package will give clinics a rebate if they meet the minimum threshold for bulk-billing.
Millions of Australians struggling with the cost of living are set to benefit from a $189 million initiative to ensure more doctors in New South Wales bulk-bill. The state government isn't directly handing out money to residents to spend on medical appointments.
Instead, the government has incentivised some 2,300 GP clinics across NSW to bulk-bill more patients by offering rebates if they meet certain thresholds. Doctors aren't immune to rising costs, with many trying to keep up by passing on out-of-pocket expenses or "gap fees".
Minister for Finance Courtney Houssos said the scheme would "alleviate financial stress for GP clinics and deliver real cost-of-living relief for families".
“This is the first time the NSW Government is making a strategic investment to support bulk-billing rates and protect family budgets," Houssos said.
NSW Health Minister Ryan Park said the new scheme should help stop extra costs being passed on to patients, millions of which have cut back on getting essential medical treatment.
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Finder data released last year found one in seven Aussies, equivalent to three million people, had cut back on going to the doctor and dentist due to cost-of-living pressures.
How does bulk-billing support work?
From Wednesday, clinics that meet a bulk-billing threshold of 80 per cent in Sydney and 70 per cent in the rest of the state will receive a payroll tax rebate for contractor GPs.
There were fears GP clinics would be financially devastated as a moratorium on payroll tax ended, however, the government has also waived $104 million of historical payroll tax liabilities.
“With GPs becoming more difficult to access, people are either putting off seeing a doctor and allowing their conditions to deteriorate, or they are presenting to hospitals with non-urgent conditions," Park said.
The NSW government estimates that with every 1 per cent reduction in bulk billing, there are an additional 3,000 presentations to emergency departments.
ForHealth CEO Andrew Cohen said this initiative is a game-changer for the industry.
ForHealth is the largest bulk-biller in the country, with around 2.5 million patients in NSW alone every year.
“This will help protect bulk billing accessibility at clinics like ours, throughout outer metropolitan and regional NSW," Cohen said.
"In many of these practices, we are expecting the level of bulk-billing to increase as a result.
“The removal of any retrospective payroll tax liability for all medical centres is a weight off the shoulders of the industry as clinics will no longer be at risk of closure due to large historic tax bills.”
Aussies urged not to delay a trip to the doctor
While a visit to a non-bulk-billing doctor can cost a lot of money, Aussies have been warned not to drop it down the list of priorities.
James Martin, health insurance expert at Finder, said there can be much bigger impacts if you don't sort out your health.
"Aussies have been hit with everything from rising grocery costs and petrol bills to higher home loan repayments and rent," he said. "Not having the funds to follow up health concerns can have serious consequences – even more so than an empty bank account."
Finder's research found in addition to the people cutting back on doctors' visits, 10 per cent of respondents said they had cancelled their health insurance to save a few more dollars.
But Martin said there are better alternatives.
"If money is tight, consider reviewing your existing plan to see if it's possible to cut any unnecessary cover," he said.
"Dropping down to a lower tier of coverage – from gold to silver or from bronze to basic – or nominating a higher excess can help ease the burden while still maintaining coverage."
$15 million: Aussies saving big bucks thanks to bulk-billing program
Data released earlier this year found Aussies across the country had saved an estimated $15 million thanks to another government funding package for Medicare bulk-billing.
The cost-of-living measure tripled the amount of money given to doctors who didn’t pass on out-of-pocket expenses, or ‘gap fees’, to children under the age of 16, pensioners and concession card holders.
That’s about 11.6 million vulnerable Australians who are eligible.
It resulted in a 2.1 per cent increase in the rate of GPs bulk-billing, which is equivalent to 360,000 appointments.
The biggest increase was in Tasmania (5.7 per cent), followed by South Australia (3.8 per cent), Western Australia (2.4 per cent) and Queensland (2.2 per cent).
Prior to the change, bulk-billing numbers had dropped to 80.2 per cent in the last financial year, the lowest in a decade. This sparked fears Australians already grappling with other rising costs may have been missing out on vital health care.
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