Medicare failing to keep up with rising cost of care
Medicare is failing to keep up with the rising costs of delivering healthcare, as new data reveals medical costs covered by the Medicare Benefits Scheme (MBS) have dropped significantly.
Australian Medical Association President Professor Steve Robson said the data from the Australian Institute of Health and Welfare (AIHW) highlighted the need for significant repair to Medicare following years of neglect by successive Governments.
The AIHW report reveals that after 15 years of relative stability, the proportion of general practice provider fees covered by Medicare has dropped from 91 per cent in January 2022 to 85 per cent in July this year.
The report also shows Australians are using more Medicare funded services per person.
“This data shows quite clearly the cost of healthcare is significantly outpacing the Medicare system, causing even higher out-of-pocket costs for Australian patients,” Professor Robson said.
“It also comes at a time when some state and territory governments appear intent on imposing an additional payroll tax burden on general practice, a move that will only add to out-of-pocket costs for patients.”
An AMA report last year found the Commonwealth had saved $8.6 billion since 1993 because of poor or no Medicare indexation of just the Level B general practice item.
Professor Robson said budget measures to come into effect in November, such as tripling the GP bulk billing incentive, adding an extra round of MBS indexation, as well as changing the indexation formula, would help address the issues.
“These measures included by the federal government in the 2023 Budget are so important, but it’s still a work in progress,” Professor Robson said.
“The AMA will continue working with the federal government on important reforms to ensure Medicare better represents the value of healthcare patients receive.
“The chronic underfunding of Medicare has had a direct impact on the hip pocket of Australians, which is being acutely felt now as we are in the middle of a cost-of-living crisis.”
