Medicare: $15m in bulk-bill savings for Aussies under ‘game changing’ cost-of-living incentive

Australians needing to see a doctor have saved an estimated $15 million in out-of-pocket expenses since the government tripled a Medicare bulk-billing incentive.

The rate of GPs bulk-billing has increased 2.1 per cent - to the tune of 360,000 appointments - since the federal government rolled out the “game changing” $3.5 billion incentive program in November, according to fresh data released by the Department of Health.

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.

Medicare bulk-billing incentives have been described as
Medicare bulk-billing incentives have been described as "game changing" by Health Minister Mark Butler. · NCA Newswire

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“The Albanese government committed to making it easier for people to see a bulk-billing doctor and the first two months of data show that is exactly what is happening right around the country, particularly in rural and regional areas,” Health Minister Mark Butler said.

"I hope this is the beginning of a real turnaround in bulk-billing behaviour."

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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.

A Productivity Commission report released today found patients are increasingly holding off seeing a GP due to the cost of appointments, despite more clinics offering bulk billing.

The number of people avoiding the doctor due to cost doubled from 7 per cent in 2022 to 2023, compared to 3.5 per cent the previous year.

New South Wales led the number of clinics offering bulk billing appointments, with 82.3 per cent, however the number of people putting off visits jumped from 4.4 per cent to 9.5 per cent last year.

Medicare subsidy changes

The amount offered to GPs under the current incentive varies depending on where they are located.

For a standard consultation, the incentive increased from $6.85 to $20.65, while remote doctors have been given a rise, from $13.15 to $39.65.

The fee of a standard GP consultation also rose in November to $102 after a recommendation from the Australian Medical Association (AMA) to help doctors struggling with rising practice costs.