Medicare is Australia’s universal health scheme. It is a Commonwealth government program that guarantees all citizens (and some overseas visitors) access to a wide range of health services at little or no cost.
Medicare is funded through a mix of general revenue and the Medicare levy. The Medicare levy is currently set at 1.5% of taxable income with an additional surcharge of 1% for high-income earners without private health insurance cover.
Medicare funds access to health care in two main ways. The first, the Medical Benefits Scheme, provides benefits to people for:
> out-of-hospital medical services, including general practitioner (GP) and specialist services
> dental care for children in limited circumstances
> eye checks by optometrists
> allied health services in limited circumstances, and
> medical services for private patients in public and private hospitals (excluding accommodation, theatre fees and medicines).
The benefits paid to patients under Medicare are generally 85% of the fee listed for the service in the Medicare Benefits Schedule (75% of the schedule fee for private patients in hospital). When providers are willing to accept the Medicare benefit as full payment for a service, they bill the government directly (bulk-billing) and the patient is not charged.
The Commonwealth’s Medicare scheme also guarantees public patients in public hospitals free treatment. Public hospitals, however, are funded jointly by the Commonwealth and state and territory governments (who own and operate public hospitals).
Medicare sits alongside the Pharmaceutical Benefits Scheme, which subsidised the cost of a wide range of pharmaceuticals.However, some people choose to purchase private health insurance for extra protection and peace of mind, in case they become seriously ill. In this case, private health insurance is available which can offer faster treatment for serious diseases, and access to alternative therapies.
For further details on health insurance in Australia, see:
> Medicare
