Media release

AMA calls for urgent Medicare rebate reforms to meet rising healthcare costs

The Australian Medical Associations says the Grattan Institute’s report into non-GP specialist fees highlights the urgent need for reforms to ensure Medicare rebates keep pace with the rising costs of delivering timely, high-quality healthcare to all Australians. 

specialists

AMA President Dr Danielle McMullen said the report underscored the need for further investment in our healthcare system.  

Private outpatient services alleviate pressure on the broader health system, and ongoing support for this sector — through adequate and responsive MBS funding — is vital to maintaining choice, affordability, and sustainability,” Dr McMullen said.  

Dr McMullen said a range of factors contribute to high out-of-pocket costs for patients, with years of stagnant Medicare rebates being a major factor. 

“Medicare rebates have lagged inflation for years, and we welcome the report’s recognition that it is time for a review of Medicare rebates to ensure they reflect the real costs of providing care,” Dr McMullen said. 

The AMA has also supported greater fee transparency and will work with the government in finalising its enhanced medical cost finder website to ensure patients are more informed about the potential fees they might face for private specialist care. 

“For specialist care delivered in private hospitals, it is important to remember that 97.2 per cent of services for privately insured patients are delivered under known or no-gap arrangements,” Dr McMullen said. 

“However, the report goes too far in suggesting the government should deny patients access to their Medicare rebate simply because of their choice of specialist.  

“We have also been calling for an independent Private Health System Authority to oversee reforms that would support a more sustainable private health system — one that protects patient choice and clinical autonomy.  

“Our Clear the Logjam campaign has shown just how much pressure our public hospitals are under after years of underfunding by governments and this report is another reminder of the long delays patients face when trying to access care through our public hospital system. It is time for all governments to reach agreement on a new and properly funded National Health Reform Agreement to bring down these unacceptable waiting times. 

“We also welcome recognition of the need for an independent national workforce planning agency to ensure Australia’s medical workforce has the right skills, in the right places, to meet future community needs and demand. 

“Targeted investment in a sustainable, well-distributed health workforce — including investment in rural and regional training — is key to ensuring every Australian, no matter where they live, can access the care they need.” 

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