👉 Background: Ever noticed how bulk-billing at medical practices have almost become extinct? And demand at hospitals has become an all time high.

👉 What happened: In yesterday's Federal budget, the government announced a $3.5 billion investment into upgrading the medicare system. The funding will go towards tripling the incentives for children, pensioners and other concession holders - that’s 11.6 million Australians.

👉 What else: The goal is to reduce the growing pressures on GP clinics and hospitals. But it will also hopefully address one of biggest contributors to the clogged system - frozen Medicare rebates.

What's the key learning?

💡Medicare rebate is the term used for the amount paid by the government to GPs and medical practitioners for looking after us. When GP’s bulk-bill the cost of an appointment, it means we don’t have to bear the cost as its fully covered by the government.

💡But despite sky high inflation, the Medicare rebate hasn’t really changed much. Last year, the rebate went up by 1.6% while inflation was up 7.8%. As a result, doctors were no longer offering bulk-billing because it’s no longer commercially viable.

💡This means that:

• People are delaying or avoiding going to GP’s to avoid the costs.
• Hospital emergency rooms are being crowded for minor injuries, putting pressure on the overall health system.

So, hopefully these changes to the Medicare system will sort things out once and for all.