Albanese Unveils $8.5 Billion Medicare Boost to Make GP Visits Free

Image credits: AAP / Rob Burnett/AAPIMAGE

The Australian government has announced a significant boost to Medicare funding, with Prime Minister Anthony Albanese unveiling an $8.5 billion plan to make GP visits free for 9 out of 10 patients by 2030. The move is seen as a key plank of Labor's re-election strategy, with health expected to be a major issue in the upcoming election. The plan would see bulk-billing incentive payments tripled for GPs, as well as an additional loading payment for clinics that bulk bill every patient they see. Funding will also go towards 400 nursing scholarships and training 2,000 GPs each year.

The Coalition has pledged to match the plan, with Opposition Leader Peter Dutton announcing that a Coalition government would invest $9 billion in Medicare to "fix Labor's healthcare crisis and ensure all Australians have timely and affordable access to a doctor". The move has been seen as an attempt to neutralize Labor's advantage on health, with the Coalition seeking to match Labor's commitment to making GP visits more affordable. The healthcare system is expected to be a key battleground in the election, with both sides seeking to outbid each other on Medicare funding.

However, some have questioned the effectiveness of the plan, with the Australian General Practice Alliance (AGPA) warning that the changes may not address the underlying issues in the healthcare system. The AGPA has called for fundamental reform to address the "red tape that binds and strangles our healthcare", and has warned that the changes may stymie the "small business know-how and acumen" of GP practices. Additionally, some have noted that the plan does not include any offsetting productivity requirements, and may simply expand the existing healthcare system without improving its efficiency.

Despite these concerns, the plan has been welcomed by many in the healthcare sector, with the Australian Medical Association (AMA) and the Royal Australian College of GPs (RACGP) backing the investment. The AMA has warned that insufficient increases to Medicare rebates mean that the funding doctors get "no longer bears any relationship to the actual cost of providing high-quality services to patients". The RACGP has cautioned that the changes may not fix every problem in accessing medical care, but has welcomed the new incentives as a step in the right direction. The Medicare system is expected to be a key issue in the election, with both sides seeking to demonstrate their commitment to the health sector.

The plan has also been seen as an attempt to create political distance between Labor and the Coalition on healthcare, with Labor seeking to capitalize on the Coalition's perceived weaknesses on the issue. The Coalition has pointed to health data that shows an 84% bulk-billing rate when Dutton was health minister in 2014, and an 88.5% rate when the Coalition left office in May 2022, compared to a 77.7% rate in December 2024 under Labor. However, Labor has accused the Coalition of "cooking the books" on bulk-billing data, and has warned that the Coalition's plan may not be as effective as claimed. The election is expected to be closely contested, with healthcare a key issue for many voters.