Both Labor and the Coalition have committed to paying GPs more for bulk-billing appointments.
The Labor Government made the announcement over the weekend, committing $8.5 billion if they are re-elected to incentivise GPs to bulk bill all their patients.
The Coalition matched the commitment shortly afterwards.
The move has been widely welcomed, although some medical experts say it won’t automatically make doctors’ visits free.
Bulk billing
Medicare is Australia’s taxpayer-funded national health insurance scheme.
When a GP bulk bills a patient, they receive a direct payment from Medicare that covers the cost. Some GPs don’t bulk bill, meaning they charge patients directly.
The gap between the Medicare rebate and the direct payment is known as an “out of pocket cost”.
Currently, GPs are paid more (an ‘incentive’) for bulk-billing certain patients.
Decline
Data from the Productivity Commission showed 47.7% of patients were fully bulk-billed in 2023/24, down from 51.7% the year before.
The average out-of-pocket cost for visiting a GP is about $45.
In November 2023, the Government tripled the ‘incentive’ for GPs who bulk billed children under 16 or concession card holders. The bonus was aimed at reversing the decline of bulk billing rates.
Announcement
Over the weekend, Labor announced it will roll out the tripled incentive for doctors who bulk bill every patient by November, if it wins the next election.
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Prime Minister Anthony Albanese announced the move in a major speech at a marginal seat in Tasmania.
“No Australian should have to check their bank balance to see if they can afford to see a doctor,” Albanese said.
An election must be held by 17 May.
Coalition
The Federal Coalition has matched Labor’s commitment to paying GPs more to bulk bill.
TDA has confirmed the Coalition would also introduce the incentive in November, meaning it’s likely to come into effect no matter who wins the next election.
On top of this, Opposition Leader Peter Dutton and Shadow Health Minister Anne Ruston said the Coalition would invest $500 million to double the number of subsidised mental health sessions from 10 to 20.
Reaction
Peak medical bodies, including the Australian Medical Association (AMA) and the Royal Australian College of GPs (RACGP), welcomed both parties’ commitment.
RACGP President Dr Michael Wright told TDA it was a “big funding initiative which is going to increase access.”
However, he added it would not necessarily mean doctors’ visits will become free overnight.
“The increase in the incentive still doesn’t cover the cost of providing care,” Dr Wright said.
The Government estimates under its policy, 90% of GP visits will be bulk-billed by 2030.
However, AMA President Dr Danielle McMullen said there are major overhead costs associated with running a general practice, such as buying and maintaining medical equipment and hiring receptionists and nurses.
At some clinics, the GP might opt to keep charging out-of-pocket to remain commercially viable, Dr McMullen said.
