Medicare is Australia's universal health insurance scheme. It guarantees all Australians (and some overseas visitors) access to a wide range of health and hospital services at low or no cost.
Funding of the health system in Australia is a combination of government funding and private health insurance. Government funding is through the Medicare scheme, which subsidises out-of-hospital medical treatment and funds free treatment in a public hospital.
The health system is funded by Australian and state and territory governments as well as non-government funders such as private health insurers and individuals.
Key facts. Everyone in Australia with a Medicare number is entitled to free treatment in a public hospital. If you have private health insurance, you can choose to have treatment as a public patient in a public hospital, or as a private patient in a private or public hospital.
The new Parliament passed the health care legislation in 1974, establishing free public hospital care and subsidized private care. However, following a change in government in 1975, access to free health care services was limited to retired persons who met stringent means tests.
You do not have to have private health insurance in Australia. All Australian residents can get healthcare through Medicare. Waiting times for elective (planned) surgery under Medicare can sometimes be long. Private hospital insurance can enable you to have elective surgery done sooner in the private system.
Health spending in 2020–21
Australia spent an estimated $220.9 billion on health goods and services in 2020–21 – this is an average of approximately $8,617 per person. The real growth (adjusted for inflation) in total health spending (recurrent and capital) was 7.1% more than in 2019–20.
Australia's health system is one of the best in the world, providing safe and affordable health care for all Australians. It is jointly run by all levels of Australian government – federal, state and territory, and local. Australia's health system is one of the best in the world.
Costs for in-hospital services. You pay no out of pocket costs for treatment as a public patient in a public hospital if you have a Medicare card. You may have to pay out of pocket costs if you are a private patient in a public or private hospital.
Public and private hospitals are funded from a range of sources, including the Australian Government, state and territory governments, private health insurance funds and out-of-pocket payments by individuals.
Does Australia have universal healthcare – care that is accessible or free for everyone? The answer is based on your status as a citizen or resident of Australia. For citizens and permanent residents, Australian health care can be low-cost or free. The costs of healthcare in Australia are covered through taxes.
Worryingly, about 9% in 2018 and 6% in 2021 said they could not pay for needed health care or medicines over the past 12 months. Extrapolating the 6% from 2021 to the Australian population, this represents approximately 1.5 million Australians who do not have enough money to pay for needed health care.
Despite the continued availability of Medicare, there is evidence that Australia's healthcare is becoming less affordable: Australians pay for about 17 per cent of total health expenditure directly through out-of-pocket expenses. This adds up to $29.8 billion, or about $1,235 per person.
Australia is host to an ageing population – we're living longer due to better drugs, devices and technologies. The demand on health services is higher than before due to more people experiencing chronic and complex disease. Claims are also higher as a result.
Australians help pay for Medicare through 2 income taxes: the Medicare levy. the Medicare levy surcharge.
The Australian hospital sector is more efficient than Canada's and further efficiency is being driven by national adoption of activity-based or case-mix funding. Under this arrangement, hospitals are paid for the work they do — up to a cap.
Public hospital costs
Most treatment in public hospitals is free for all Australian citizens and most permanent residents. These costs are mainly paid for by Medicare. You will not have to pay for hospital clinical services, doctors' and specialists' fees, medication, hospital accommodation and operating theatre fees.
If you're not covered by a health fund, or if you have a large bill to pay, some doctors may offer a payment plan. The average cost of an appointment with a GP (general practitioner) in Australia is around $50, while the average cost of a specialist appointment is around $130.
“Australia's combination of public and private health coverage makes it one of the very best systems in the world,” Mr Fleming said. “The health system in the United States is more complex and can be much more expensive, often leaving many without the right level of cover or no cover at all.
Australia achieves substantially better healthcare outcomes than the UK. Cancer survival rates are several percentage points higher, while heart attack and stroke mortality rates are several percentage points lower.
Medicare is Australia's universal health insurance scheme. It guarantees all Australians (and some overseas visitors) access to a wide range of health and hospital services at low or no cost.
For private patients, while Medicare covers some of the doctor's fees,, it doesn't cover hospital charges like accommodation and theatre fees. Private health insurance can help cover these costs, if you have it.
The financial cost of preventing and treating ill health is substantial. Australia spent about $195.4 billion on health in 2018–19—or almost $7,764 per person.