Changes to Medicare aimed at giving GPs more incentive to bulk bill patients came into effect on November 1.
It means bonus payments will triple for GPs who don’t charge out-of-pocket fees to older patients, low-income patients, and children.
The Treasurer announced the changes in the May Federal Budget. It comes amid a sharp fall in bulk billing rates.
What is bulk billing?
The Government subsidises GP visits through Medicare.
The current subsidy for a basic consultation under 20 minutes is $41.40 – meaning a GP can charge a patient any amount, and the patient will then be reimbursed $41.40 through Medicare.
This means the patient pays for the ‘gap’ (any amount above $41.40). Alternatively, the GP can bulk bill.
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How does bulk billing work?
Instead of charging the patient, a GP can accept the $41.40 subsidy as the full price for a consultation, and receive payment directly from Medicare instead. This is bulk billing.
On average, patients who aren’t bulk billed pay $42 above the subsidy level.
The incentive
The bulk billing ‘incentive’ is a payment given to GPs who bulk bill certain patients.
These patients include children under 16, people over 65, welfare recipients and those with low incomes.
Patients who live in regional, rural, or remote areas are less likely to have a bulk billing option.
