Government Incentives Drive Regional Changes
Cleanbill’s latest report highlights that bulk billing rates in Australia rise where government funding aligns with the actual cost of care, not where there is more competition among general practices.
Released on 11th April 2023, the report indicates significant increases in 100% bulk billing rates in regional and rural areas where government incentives are strongest, even though these areas have fewer general practitioners per capita.
RACGP President Dr. Michael Wright affirmed that the findings support the call for an independent Medicare pricing body in addition to increased rebates for longer consultations.
Bulk Billing Trends by Area
The report identifies the largest increases in bulk billing in areas classified under the Modified Monash Model (MM2-7), with some remote regions experiencing growth rates exceeding 30%.
In contrast, metropolitan areas with higher GP-to-population ratios experienced the smallest increases in full bulk billing. Average out-of-pocket costs for patients paying a gap also rose by 13.5%, with non-metropolitan regions facing higher costs.
Dr. Wright emphasised, “This report shows exactly what we said would happen has happened. When funding better matches the cost of care, bulk billing increases.”
The RACGP highlighted a growing disparity in healthcare access between urban and regional areas, urging for an independent pricing authority to ensure equitable funding.
Less than 35% of GP clinics are located outside capital cities, contributing to a growing two-tier system. Regional Australians are more likely to face higher gaps when bulk billing is unavailable, despite having fewer local GP services.
Key findings reveal that government incentives drive bulk billing increases in areas with fewer GPs. This situation underscores the need for an independent pricing authority to maintain fair healthcare access across Australia.
The RACGP argues that the current Federal Government’s investments demonstrate the value placed on primary healthcare. However, this does not guarantee the same commitment from future governments, which is why an independent pricing authority is crucial.
Such an authority would provide transparent, evidence-based decision-making to direct funding where it is most needed and effective. This would give general practitioners the trust and certainty they require when making financial decisions, including those related to billing policies.
