Medicare
Medicare is Australia’s universal public health system. It provides high quality healthcare, which is both affordable and accessible to all Australians and often provided free of charge at the point of care.
It is financed largely from general taxation revenue, which includes a Medicare levy based on a person’s taxable income (currently set at 1.5%--or 2.5%, above a threshold income, for people without private health insurance).
Funding for Medicare is mainly provided as:
- subsidies for prescribed medicines (with a safety net providing free medicines for the chronically ill) and free or subsidised treatment by practitioners such as doctors, participating optometrists or dentists (specified services only);
- substantial grants to State and Territory Governments to contribute to the costs of providing access to public hospitals at no cost to patients; and
- specific purpose grants to State/Territory governments and other bodies.
Some injuries and illnesses are covered by other forms of financing: for example, compulsory workers' compensation insurance covers work-related injuries and illnesses, and injuries from motor vehicle accidents may be covered by compulsory third person motor vehicle insurance.
Medicare provides financial assistance to eligible people who incur medical expenses in respect of professional services rendered by eligible qualified medical practitioners, participating optometrists and eligible dentists. Medicare benefits are paid based on a percentage of the Medicare Schedule fee.
Medicare also provides free in-hospital services in public hospitals for patients who choose to be treated as public patients. Under the Medicare arrangements, public patients in public hospitals are not charged for their medical services or hospital accommodation costs. Funding for services to these patients is shared between the Australian Government and State and Territory Governments. Some dental services including cleft lip and palate services also attract Medicare benefits.