Push to boost Medicare funding as bulk billing rates drop

Jan 14, 2025
Are out-of-pocket costs stopping you from visiting the doctor? Source: Joel Carrett/AAP PHOTOS.

Calls are growing for increased funding to Medicare after a recent report found that fewer GP clinics than ever are taking on new bulk billed patients.

Australia’s bulk billing rate plummeted to 20.7 per cent at the start of 2025, down from 35.7 per cent two years earlier, data released by healthcare directory Cleanbill showed on Monday, January 13.

The findings came as little surprise to veteran GP Sabrina Saldanha, who was forced to remove bulk billing entirely from her Sydney practice of more than 30 years after being unable to keep up with rising operating costs and the complexity of medical services.

“One factor is the cost and the other really is the complexity of medicine; the amount of energy, time, effort, knowledge base, research that goes into every consultation has increased because of the changes in medicine over the years,” Dr Saldanha told AAP.

“Patients are very time poor and that basically means they want to fit far more into their consultation.”

Cleanbill’s annual survey of nearly 7000 GP clinics found that the average out-of-pocket cost for patients increased four per cent year on year, with the price of a consultation averaging $43.38 in 2025.

Rising out-of-pocket costs have been blamed for around 1.5 million people avoiding a GP visit for a health concern due to financial barriers, according to the Australian Bureau of Statistics’ patient experiences survey released in November.

“The data is absolutely concerning, but it’s not particularly surprising … anyone who’s gone to see a GP in recent years knows how few bulkbilling clinics remain and how high out-of-pocket costs can be,” Cleanbill founder James Gillespie told AAP.

Health Minister Mark Butler challenged Cleanbill’s findings, which are considerably lower than the government’s official bulk-billing rate of 77.2 per cent in November. The discrepancy arises because government data measures total GP visits that were bulk-billed, while Cleanbill tracks clinics that accept new bulk-billed adult patients without a concession card.

“Official data shows our record investment to strengthen Medicare has stopped the freefall in bulk billing that was created under the Liberal and Nationals government,” Butler said.

The Federal Government tripled bulk-billing incentives in 2023 for pensioners, concession card holders, and children, meaning GPs received a $21 bonus in cities and almost $40 in regional areas.

Despite the government’s efforts, Royal Australian College of General Practitioners president Michael Wright said an increase in Medicare funding should be a priority heading into this year’s federal election.

“Medicare has been underfunded for decades … today’s patient rebates don’t come close to the cost of care, so people are paying more out of pocket, it’s harder for GPs to bulk bill,” he said.

“When people can’t see their GP or delay care due to costs, their health gets worse and they are more likely to end up in hospitals … that’s bad for their health, and costs taxpayers more.”

-with AAP.

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