What is Medicare?

Medicare is Australia's universal public health insurance scheme, providing free or subsidised access to medical services, public hospitals, and prescription medicines for all Australian citizens, permanent residents, and certain visa holders. It was introduced by the Hawke Labor government on 1 February 1984, succeeding the earlier Medibank scheme that had operated from 1975 to 1981.

The scheme is funded through a combination of general taxation revenue and the Medicare Levy, currently 2 per cent of taxable income for most working Australians. Higher-income earners without private hospital insurance may also pay the Medicare Levy Surcharge (1 to 1.5 per cent depending on income). The federal Department of Health and Aged Care administers Medicare policy, while Services Australia operates the day-to-day claims and payments system through its Medicare brand.

Medicare covers a wide range of services. General practitioner consultations, specialist appointments (usually with a referral from a GP), pathology and imaging tests, eye tests by optometrists, surgical and obstetric procedures in public hospitals, and most treatment received as a public patient in a public hospital are covered. The Medicare Benefits Schedule (MBS) lists the rebate Medicare pays for each service. Some practitioners bulk-bill Medicare directly (no out-of-pocket cost to the patient), while others charge a gap above the Medicare rebate.

Medicare does not cover most dental services for adults, ambulance services (covered by state schemes or private cover), most physiotherapy and psychological services beyond limited referred sessions, and treatment as a private patient in either public or private hospitals beyond the MBS rebate. The Pharmaceutical Benefits Scheme (PBS), a separate but parallel programme, subsidises most prescription medicines. New citizens are enrolled in Medicare automatically and receive a green Medicare card with their Medicare number, which is used to claim services.