Federal election 2025: Billion dollar promises of boosts to Medicare ‘fall short’ of dire needs

Both major parties promised multi-billion dollar boosts to Medicare on Sunday — but they failed to wash with a prominent West Australian GP or the Australian Medical Association. Labor announced it $8.5 billion bulk-billing plan as its major election pitch only to be gazumped a few hours later by the Liberal Party’s promise to raise it to $9 billion. The commitments to make trips to the GP free mark the biggest funding injection into Medicare for 40 years. Labor says it will expand the bulk billing incentive currently only afforded to a select group and incentivise payments for clinics to bulk bill. The Coalition’s commitment includes matching Labor’s pledge plus an additional $500 million previously announced for mental health support. Andrew Leech, who owns two clinics in Perth, said while funding was overdue there would still be shortfalls — especially for patients requiring long appointments. Dr Leech said staffing, insurance, consumables, maintenance and growing IT bills were just the start of the fees keeping him awake at night. “I’ve seen these costs go up in the 11 years I’ve been practising,” he said. “I hold my breath at the end of a financial year when the accountant outlines where every dollar goes and whether we broke even or not. “What you may not hear from the government, is that small businesses like ours are trying hard to support patients and provide a quality service, but we can’t do that with Medicare alone as it doesn’t pay these bills. “When the government talks about tripling the bulk-billing incentive, it helps, but will it be enough? Unlikely. “The statement that ‘every consult will be free’ is unhelpful as it puts the pressure on us to abide by this and if we don’t, we look greedy and unreasonable.” The AMA also said the new proposed bulk-billing incentive would not “come close” to meeting doctors’ costs. Australian Medical Association president Danielle McMullen said the funding was needed to “reverse decades of under-investment” and to “start to shift the dial” on accessible and affordable general practice care. “I think in some parts of Australia this will see a shift in the rates of no out-of-pocket consultations. In other parts, it’s unlikely to make a huge difference,” Dr McMullen said. “The average out-of-pocket cost is now above $40 and so the $20 bulk billing incentive still doesn’t come close to meeting those costs. “I do hope this will make a difference in rural and regional communities and in our areas of socioeconomic disadvantage.” She also welcomed Labor’s announcement that it would fund support for training places, sign-on bonuses and paid parental and study leave for general practice trainees. The Australian College of Rural and Remote Medicine welcomed the Government’s commitment to strengthening general practice, particularly in rural, remote, and First Nations communities. Dr Leech said the current Medicare rebates were a disadvantage to people needing longer consultations, such as mental health patients — of which there were growing presentations. Instead they encouraged GPs to stick to six-minute consultations which would be the best “value for money” for a clinic. Prime Minister Anthony Albanese formally announced his plan at a campaign-style rally in Launceston on Sunday, labelling it the “beating heart of our election campaign”. Labor claims its changes would mean nine out of 10 GP visits would be bulk billed by 2030, lifting the bulk billing rate to 90 per cent. It is currently 77.7 per cent. Mr Dutton said it had “never been harder and more expensive to see a doctor”. “This investment builds on the $500 million commitment already announced by the Coalition to restore critical Medicare funding for mental health support, after it was slashed in half by the Albanese government,” he said. The Coalition’s commitments should ensure it avoids another after “Mediscare” campaign, which Labor used in 2016 to stoke fears about cuts to the service. It came close to toppling the Turnbull government. Also speaking at the Labor campaign event, Health Minister Mark Butler accused Mr Dutton of attempting to abolish bulk billing altogether in 2014. “When we came to Government almost three years ago, bulk billing was in free fall. A free fall directly caused by Dutton’s Medicare freeze,” Mr Butler said, Shadow Treasurer Angus Taylor had first hinted Opposition would follow suit when he said Coalition “won’t get in the way” of Labor’s proposal while speaking on Sky News on Sunday morning. However, Mr Taylor said the move was Labor “cleaning up the mess it has made”. Mr Taylor also said the Labor Government had not explained how the government would pay for the measure while the Budget was in deficit. But Treasurer Jim Chalmers said the proposal had already been partially funded in the mid-year-budget update. “$5.4 billion of the $8.5 billion that we’re announcing today, we already provisioned for in the mid-year Budget update,” Mr Chalmers told the ABC. As Mr Albanese unveiled his Medicare plan in the marginal battle seat of Bass, speculation is mounting that he’s preparing to call an election in earnest. Labor insiders believe that an April 12 federal election is firming up, with an announcement tipped straight after the WA election on March 8. Once the writ is issued by the Governor-General, it means the Government would go into “caretaker mode” — pushing ordinary business like a Budget to the back burner. Mr Dutton said if the PM fired the starting gun before the Federal Budget it would delay these laws to boost Medicare. “I think the onus is on the Prime Minister to make sure the Parliament sits as scheduled and we can legislate to provide a guarantee around this funding, which is important for general practice,” he said. Mr Albanese’s Tasmania event marked the third campaign-style rally event he has held since November — the previous two were used to announce slashing of student debts and a three-day childcare guarantee.

Federal election 2025: Billion dollar promises of boosts to Medicare ‘fall short’ of dire needs

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