Recent research has shown people are paying more out-of-pocket costs to see a GP than ever, despite the government tripling bulk-billing incentives last year.
Data from the Royal Australian College of General Practitioners (RACGP) Health of the Nation survey reveals that the average patient’s out-of-pocket costs for a GP visit have risen to $36.86 for a 20-minute consult in 2024, an almost 6 per cent increase on last year ($34.91).
This is despite the fact that the report also found that one in four GPs are bulk-billing more patients since the government tripled the bulk-billing incentive payment in November last year.
Where is the disconnect?
Dr Nicole Higgins, RACGP president, told newsGP the data reflects the reality of the costs involved in running a general practice clinic and the impact inflation is having.
“As a practice owner, the costs of running a practice have gone up 6.1 per cent, which is much higher than Consumer Price Index (CPI),” she said.
“General practice runs on thin margins, and we’ve been subsidising the cost of patient care because patients’ Medicare rebates have not kept up with the cost, but we can’t afford to continue doing that.”
It’s also important to note that the bulk-billing incentive is not the same as the Medicare rebate – the rebate paid to doctors for each patient seen. That payment is indexed annually and went up just 3.5 per cent in July – also well below CPI.
The bulk-billing incentive is a payment to doctors who bulk-bill patients from vulnerable groups. The amount differs depending on geographic location. GPs receive the incentive for bulk-billing holders of a Pensioner Concession Card, Commonwealth Seniors Health Card and Health Care Card, as well as children under 16 years.
The RACGP found the incentive led to an additional one million GP consultations in the first six months after it was introduced.
So, while the bulk-billing incentive has undoubtedly helped many vulnerable older Australians see a GP, it hasn’t done a lot for wider bulk-billing rates, which has resulted in out-of-pocket costs rising on average.
How do we fix it?
Dr Higgins said while the bulk-billing incentive is a good start, it’s really only playing catch-up after “decades of underfunding and the Medicare freeze”.
The government made a big show of ‘strengthening Medicare’ in this year’s Budget, tripling the incentive and also increasing the Medicare rebate for some special procedures like nuclear medicine. But the RACGP say the changes don’t go anywhere near far enough.
They’re calling for the rebate for GP visits to be raised by at least 20 per cent, with additional increases for rural and remote communities. They say this will allow everyone to access care during the cost-of-living crisis and not just a fraction of our population.
“Medicare, when it was first designed 40 years ago, was intended to cover 85 per cent of the cost of providing care and it’s now less than 45 per cent in general practice,” said Dr Higgins.
“The government needs to go much further to rebuild Medicare and general practice care, like it promised.”
Are you able to access a bulk-billing GP? How do you think we should reform the Medicare rebate? Let us know in the comments section below.
Also read: Bulk-billing GPs accused of Medicare breach by also charging patients
As a pensioner I get bulk billed by my GP and other health care providers. As a Queensland public patient I pay nothing when I need hospital treatment. Same applies with public dental. Where I live all these services are very good quality and waiting times are not excessive. I know of private patients who have waited longer for their expensive treatment.