The Australian Health System
The Australian health system is widely regarded as being world-class, in terms of both its effectiveness and efficiency. The system is a mixture of public and private sector health service providers and a range of funding and regulatory mechanisms:
- The Australian government with the primary role of developing broad national policies, regulation and funding.
- State and Territory and Local governments who are primarily responsible for the delivery and management of public health services and for maintaining direct relationships with most health care providers, including regulation of health professionals and private hospitals.
- Private practitioners including general practitioners, specialists and consultant physicians.
- Profit and non-profit organisations and voluntary agencies.
The Australian Government’s funding includes three major national subsidy schemes, Medicare, the Pharmaceutical Benefits Scheme and the 30% Private Health Insurance Rebate.
Medicare and the Pharmaceutical Benefits Scheme cover all Australians and subsidise their payments for private medical services and for a high proportion of prescription medicines. Under Medicare, the Australian and State governments also jointly fund public hospital services so they are provided free of charge to people who choose to be treated as public patients. Australian Government funding of the 30% Rebate and other key incentives support people’s choice to take up and retain private health insurance.
People make their contribution to the health care system through taxes and the Medicare levy based on their income, and through private financing such as private health insurance.
The aim of the national health care funding system is to give all Australians, regardless of their personal circumstances, access to health care at an affordable cost or at no cost, while allowing choice for individuals through substantial private sector involvement in delivery and financing.
Last updated: 21 January, 2009