Australian Health Care System: The Australian Healthcare System

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The Australian health care system is made up of public and private health, has 3 national subsidy schemes, Medicare, the Pharmaceutical Benefits Scheme and a 30% Private Health Insurance rebate. Life expectancy in Australia is an average of 78 years for males and 83 years for females, which is one of the highest rates among developed countries (Allianz Worldwide Care 2013), so with this in mind the Australian health care system continually needs to improve. Originally Medicare was established on 1 July 1975 as Medibank by the Whitlam Labor Government, which involved free treatment for public patients in public hospitals and subsidised fees to private hospitals. On 1 October 1976, Medibank Mark II was launched where a levy of 2.5% tax levy…show more content…
Over the years there has been a great deal of changes, 1984 saw the introduction of bulk billing, since 1984 until now the increase of the tax levy has only increased to 1.5%. (Parliament of Australia 2004) The Australian health care system is funded by national, state/territory and local government and can receive revenue for services to private patients, which equates to 11% of health care funding. In 2011, almost 10.3 million Australians opted for private hospital insurance, which is nearly 45% of the population. (Australian Bureau of Statistics 2012) There are many different types of health insurance available to the Australian public, which include hospital cover, extras or even just ambulance cover. In 2011, nearly 55% of the population had some type of health cover. (Australian Bureau of Statistics…show more content…
(Australian Government - Health and Ageing 2013) The Australian Government has increased their expenditure from $77.5 billion in 2000-2001 to $130.3 billion in 2010-2011 with the largest increase being for public hospitals and medications. (Australian Government - Australian Institute of Health and Welfare 2012) Figure 4.1: Proportions of annual growth in health expenditure, by area of expenditure, constant prices, 2007–08 to 2010–11 (per cent) Table 4.3: Recurrent expenditure on health goods and services, current prices, by broad area of expenditure, 2010–11 Area of expenditure Amount ($ million) Per cent Public hospitals 38,937 31.50% Medical services 22,525 18.20% Medications 18,425 14.90% Private hospitals 10,768 8.70% Dental services 7,857

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