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Australia's Healthcare System
Australia's Healthcare System
The Australian healthcare system has many different types and tiers of services available to help you. This article provides you
with some information to help you understand the different types of healthcare available and how you can access them.
General practitioners (GPs) and emergency departments (EDs) act as the main gateways to other health services, including
diagnostic tests, specialist consultations, hospital admission and inpatient care.
Primary care is provided by doctors, along with community nurses, dentists, pharmacists and other allied health professionals.
Allied health
Allied health practitioners are trained professionals who are not doctors, dentists or nurses.
They can help you manage your physical or mental health, through services including diagnosis, treatment or rehabilitation.
Learn more about allied health practitioners.
The free government-funded after-hours GP helpline can help. You can speak to a registered nurse who will ask you questions
about your health. They will provide you with information and advice. If needed, a GP will call you back within the hour.
After-hours doctor call-out services are available in major cities and centres. These are private services and a doctor can come
to your home. In some cases, this service may be covered by Medicare.
Emergency departments
EDs are able to treat patients who need urgent medical or surgical care. Most EDs are located in, and operated by, public
hospitals throughout Australia.
EDs are designed to deal with acute, sometimes life-threatening medical emergencies. Non-acute, less serious conditions are
best dealt with by a general practice.
If you are not sure whether your medical condition is urgent, contact your doctor or call healthdirect on 1800 022 222 for advice.
If you think you have a medical emergency, immediately dial triple zero (000).
Specialist services
Medical specialists work in a specific area of medicine, such as cardiology or dermatology. They may work in private practice,
and within a private hospital, and/or in the public hospital system. For a specialist visit to be covered by Medicare, either partly
or completely, you will need a referral from your doctor or other healthcare provider.
Medicare provides access to free treatment and accommodation in a public hospital for Australian residents and overseas
visitors from countries with a reciprocal arrangement.
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You can choose to have Medicare cover only, or a combination of Medicare and private health insurance coverage.
If you have private health insurance, you get some funding to cover the costs of care in a private hospital. You are also able to
use a public hospital, although you will be charged for it. Your private health insurance will cover some of the costs.
Medicines are also available over the counter, without a prescription, but these are generally not subsidised.
Medicines on the PBS must first be approved by the Therapeutic Goods Administration (TGA), which also regulates vaccines,
sunscreens, vitamins and minerals, medical devices, blood and blood products.
My Health Record
My Health Record is an online summary of your medical information that can be shared with healthcare providers across
different settings. The information is secure and you have control over who sees the information.
LHNs are known by different names in different states. For example, they are known as ‘local health districts' (LHDs) in NSW
and ‘hospital and health services' in Queensland. The National Health Reform Public Hospital Funding website has a LHN
directory.
For example, both city and country people have good access to nurses but doctors, and especially specialists, are
concentrated in the cities.
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I have heard about health reform, what does it mean?
What is eHealth and a Personally Controlled eHealth Record?
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HEALTH CARE DOWN UNDER: Australia’s medical system is considered #1 in the world
Americans love to boast that we have the greatest health-care system worldwide. This has been one of the biggest arguments against
Obamacare (the popular term for the Affordable Care Act), but the World Health Organization (WHO) actually ranked the USA a
shocking 37th in the world in a study (http://www.businessinsider.com/best-healthcare-systems-in-the-world-2012-6?op=1). So which
country actually has the best health care system? Many say Australia.
In this first installment of a new series, Health Care Around the World, profiling medicine in different countries, the UMHS Pulse looks at
Australia and why their medical system is considered a model for others.
AUSTRALIAN HEALTH CARE: Accessible to people regardless of income or type of insurance. Photo: Wikipedia.com
American vs. Australian Medicare
Australia may only have a population of 22 million, but it is like a parallel version of America if you’ve ever visited. It is English-speaking
(with the famous twangy accent, of course), vast, and has similar geography, with modern cities and great beaches. What sets Australia
apart from the USA (besides better weather and opposite seasons) is the way public health care (Australian Medicare) is guaranteed to
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everyone. While Medicare is a seniors-only government program in the USA, Australia’s Medicare is a public health insurance available
to all.
PolicyMic.com says the state encourages people with the financial means to use a private system, “enforcing an additional 1% tax on
those who fall above a certain income level but use the public system anyway.” (http://www.policymic.com/articles/46063/7-countries-
that-show-us-how-health-care-should-be-done)
The method is the best in the English-speaking world. It works because Australia had a death rate from medical care conditions “50%
less than America’s in 2003 and 25% less than the United Kingdom’s,” based on a report from the Commonwealth Fund
(http://www.commonwealthfund.org/Publications/Fund-Reports/2010/Jun/Mirror-Mirror-Update.aspx?page=all).
The Australian health care system provides universal access to a comprehensive range of services, largely publicly funded through general
taxation. Medicare was introduced in 1984 and covers universal access to free treatment in public hospitals and subsidies for medical
services; Medicare is now sometimes used to describe the Australian health care system though precisely it refers to access to hospitals
(hospital Medicare) and medical care (medical Medicare). Health indicators are strong, for example Australian life expectancy is the third
longest in the OECD. Nonetheless, there are concerns in common with many developed countries, such as the ageing of the population,
rising levels of obesity, the prevalence of mental illness, and the burden of chronic disease. There is a dramatic gap in the health indicators
for the indigenous population compared to non-indigenous Australians. Health care expenditure represents approximately 9% GDP, close to
the OECD median but much less than the US.
Australia has a federal system of government, with a national (Commonwealth) government and six States and two Territories. At
Federation, health remained the responsibility of the States. However, the Commonwealth Government holds the greatest power to raise
revenue, so States rely on financial transfers from the Commonwealth to support their health systems. This makes the Australian health care
system a complex division of responsibilities and roles across levels of government. It is also marked by a complex interplay of the public
and private sectors. The system is financed largely through general taxation. Although there is a specific income tax levy (the Medicare
levy), it raises a small portion of total finance. There is also a high reliance on out of pocket payments, at 17% of total expenditure.
Government dominates funding, with 43% of total expenditure provided through the Commonwealth, and 25% through other levels of
government. This gives the Commonwealth the dominant role in policy making.
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The three major components of Medicare cover public hospitals, medical services, and pharmaceuticals. There is a strong and growing
private hospital sector. There is government support (subsidies) for private health insurance which covers both hospital inpatient treatment
and out of hospital services not covered by Medicare.
Public hospitals are owned and operated by the State and Territory Governments which also deliver a variety of mental health, dental, health
promotion, school health and community health programs. Under funding agreements with the Commonwealth, all Australians are entitled
to free treatment as a public patient in a public hospital. Public hospitals can also admit private patients, who may face a range of out-of-
pocket charges. Private patients have choice of doctor, ie the patient selects the doctor who is responsible for their care while the public
patient has a treating doctor assigned by the hospital. In practice, these are the same doctors but the doctor charges the private patient
directly for their medical care. In general, emergency departments are in public hospitals while teaching, education, and research are found
in the larger public hospitals which also tend to a treat a more complex case-mix.
The private hospital sector is growing in size and complexity. There is an increasing presence of for-profit firms operating several hospitals.
There is a strong focus on elective surgery, and many day only facilities are private. Private patients benefit from subsidized insurance (if
insured), and the Medicare subsidies for medical services in hospital.
Most medical practitioners are in private medical practice with fee for service payments. The Medical Benefits Schedule (MBS) sets a fee
for each item or service covered by Medicare, for which the Government pays a fixed rebate. New items added to the MBS are generally
assessed for safety, effectiveness and cost-effectiveness, and recommendations for public funding are made by an independent committee.
The MBS covers all out of hospital medical services, and in-hospital medical services for private patients. However, medical practitioners
are free to set their own fees above the MBS fee, thus exposing patient to out-of-pocket charges. Overall, around 70% of all medical services
are bulk billed (direct billed to Medicare) in which case there is no out of pocket fee; bulk billing rates are over 80% for primary care
attendances, and vary by specialty with . The out-of-pocket charges for out of hospital services cannot be covered by private insurance, and
recent changes have introduced the Extended Medicare Safety Net to provide some protection against high levels of private expenses
(though some services, such as cosmetic surgery, are excluded). There is a strong primary medical care sector, and general practitioners
(primary care doctors) play a gate keeping role, i.e. specialist treatment will be covered by Medicare only with a referral from a general
practitioner. There is free choice of provider, with no enrollment or restrictions. Until recently MBS payments were limited to services
delivered by medical practitioners but they are now also available in defined circumstances to patients who use practice-based nursing,
psychology, dental and other allied health services. Generally such services must be delivered as part of a planned program of care, and
specifically requested by the patient’s physician, before a benefit can be paid.
The Pharmaceutical Benefits Scheme (PBS) provides subsidized drugs at a set co-payment (at a lower level for welfare recipients). It was
established more than 50 years ago and now covers about 600 drugs in over 1,500 formulations. This comprises over 90% of all
prescriptions written in Australia. Patients therefore pay the set co-payment regardless of the cost of the drug they receive. There are safety
net provisions in place to limit total expenditure. There is direct negotiation on price between the Government and the pharmaceutical
company. All new items added to the PBS must be recommended for listing by an independent committee, the Pharmaceutical Benefits
Advisory Committee (PBAC), based on an assessment of safety, effectiveness and cost-effectiveness. Australia was the first country to
introduce a mandatory requirement for comparative effectiveness and economic evaluation.
Private health insurance funds (and there are many in Australia though the bulk of the market is covered by 4 funds) is highly regulated.
Insurance can cover private treatment in hospital (duplicating the public coverage) and out of hospital services not covered by Medicare, for
which the majority of services are dental care and physiotherapy. Since 1996, there have been incentives to encourage the purchase of
insurance, often described as ‘carrots and sticks’. The carrots comprise a 30% rebate on private insurance premiums, effectively reducing
the cost. The sticks are an income tax surcharge for higher income earners without private cover. Since 2000, there has been a financial
incentive to purchase insurance by the age of 30 and to stay with cover. This is Lifetime Health Cover, an age related premium based on the
number of years after 30 without private insurance. Other than that, premiums are community rated. From July 1, 2012, access to the rebate
has been means tested, with the full 30% applying only to individuals with an annual income less $84,000 and families less than $168,000.
The improvement of information technology as means of supporting better communication and co-ordination of care has been widely
accepted. There has been a Practice Incentives Program for primary care physicians to adopt IT strategies. Current efforts are focused on the
implementation of a Personally Controlled Electronic Health Record and are auspice under the National E-Health Transition Authority.
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Understanding the Australian health system.
So you’re planning to head ‘down under’. Good for you! Whether you’re going on holiday, visiting relatives or even intending to work there for a while, we
know you’ll have a great time. And hopefully, your stay will be accident and illness free too. But just in case the worst does happen, private health insurance
is worth considering...
Can I get cover for other services too, like dental, optical and physiotherapy?
When relocating to Australia, you firstly need to ask yourself - are you covered by Medicare, our public health system? And the answer - well, it
depends. Residents of some countries enjoy limited Medicare cover, but only for emergency treatment, and only under certain conditions. If you aren’t
covered though, you’ll have to pay for hospital or medical treatment, which can be pricey. For instance, an emergency appendix removal can cost as much
as $30,000. Ouch!
Overseas visitors who enter Australia on a temporary visa will not be eligible for Medicare benefits unless they’re a resident of a country that has a
'Reciprocal Health Care Agreement' with Australia. Currently, this includes New Zealand, the United Kingdom, Ireland, Italy, Malta, Finland, Sweden, the
Netherlands and Belgium. If you’re visiting Australia from one of these countries, you’re generally covered for medically necessary treatment in a public
hospital. You won’t be able to choose your own doctor though, and you also won’t be covered for:
Even if you're covered by Medicare though, private health insurance still makes sense. Medicare is good, but it isn’t perfect. There are still waiting lists. And
who wants to wait for a doctor when you could be enjoying Australia?
Overseas Visitors Cover (OVC) is private health insurance designed for international visitors and workers, including:
Short-term visitors
Temporary residents
If you’re applying for an Australian visa (for example, 457 temporary employment visa or a 676 tourist visa), you may need to provide the Department of
Immigration and Border Protection (DIBP) with a Visa Compliance Letter from your health insurer to verify that you have met this requirement. If you choose
to join HIF online, your letter of visa compliance will be emailed to you instantly (PDF format) upon confirming your application.
Important: If you choose to purchase HIF Overseas Visitor Cover, you must nominate a start date (the date your policy will commence). To activate your
membership, please note that we require a copy of the visa and passport details (confirming arrival dates) for everyone covered on the policy. The details
must be provided to HIF within one month of your arrival, as per legislative requirement.
For the first two years in Australia (while waiting for permanent residency to be granted), migrants are not entitled to Medicare benefits so purchasing OVC is
recommended in the meantime. Once your residency or citizenship has been approved, you’ll then begin to receive Medicare benefits so you may then wish
to change your Overseas Visitors Cover policy to a standard domestic policy instead. As well as giving you continued peace of mind that your health is
protected, you’ll also limit potential tax implications and avoid public waiting lists.
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If you’re planning to study down under and will be visiting Australia on a temporary student visa, you may be required (as a condition of your visa) to take out
Overseas Student Health Cover (OSHC). For more information on OSHC, visit health.gov.au
NB: The requirements for Overseas Student Health Cover differs slightly for students from Belgium, Norway and Sweden.
Can I get cover for other services too, like dental, optical and physiotherapy?
Absolutely! Combining HIF Extras cover (also known as ‘ancillary’ or 'auxiliary') with one of our Visitors Cover options is the best way to ensure complete
peace of mind for you and your family while you’re in Australia.
Extras insurance is used to cover services out of hospital that are generally not provided under Medicare, such as ambulance, chiropractic, complementary
therapies, dental treatments, dietetics, glasses and contact lenses, healthy lifestyle services, occupational therapy, osteopathy, pharmaceuticals,
psychological consultations, physiotherapy, podiatry visits and speech therapy. To find out more , visit our Extras Cover Options page.
Request a Callback
If you'd like to speak to one of our consultants in person about cover options, simply email sales@hif.com.au or phone us on 1300 13 40 60 and we'll be
happy to assist. Alternatively, complete the quick form below and we'll call you at a time that suits. After all, what's important to you is important to us, and we
want to ensure you're 100% happy with your decision.
Name
Phone number
Nature of enquiry
Please provide some quick info so we're ready to answer your enquiry when we call
Submit
PBS Authorities
We administer the processing of pharmaceutical benefits and safety net claims, as well as authority
applications.
on this page
About the online PBS Authorities system
Logging on through upgraded clinical or prescribing software
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Logging on through HPOS
Requesting a new PBS authority approval online
Enquire about a previously recorded PBS authority approval online
Cancel or amend a previously approved PBS authority approval online
Items excluded from online service
Writing authority PBS prescriptions
Streamlined authorities
the majority of PBS items (excluding Complex authority items and Alzheimers items), including increased
quantity and repeats where allowed. This will remove the need for approved prescribers to call us for most
authority approvals.
The online channels are available 24 hours a day, 7 days a week, where you can:
When using your upgraded clinical or prescribing software you need to register for a Provider Digital Access
A PRODA account allows health professionals and administrators to securely access HPOS. It provides an
alternative to our Public Key Infrastructure (PKI) individual certificates (smart card or USB tokens), which are
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link identifiers, such as your Australian Health Practitioner Regulation Agency (AHPRA) number and
provider number
When you create an account, your identity will be verified online in real time using the government’s Document
Verification Service (DVS), which connects to state and territory registration databases.
Once you have created your account, you can log on to HPOS. The process is digital, portable, and unlike
Medicare PKI individual certificates, doesn’t need additional hardware or software installed.
your username
your password, and
a unique verification code
You receive the code by SMS, email or generated on a mobile iOS or Android application (set up when you
phone (excluding Complex authority items and Alzheimers items), including increased quantity and repeats
where allowed.
You can also cancel or amend an authority approval request previously recorded by you.
The online channels will display all restriction criteria in full. You will need to satisfy that the patient meets the
restriction criteria, and answer any questions to provide additional information about restricted items.
The online channels will dynamically respond to information you provide for the PBS authority approval
request. Approved Prescriber fix instructions are available if you are presented with a reason code when
You still need to complete and provide your patient with a prescription and comply with the rules of writing and
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You can enquire about previously recorded PBS authority approvals if:
Note: the system can only display PBS authority approvals processed after 1 July 2015.
Contact us at PBS authority approvals to request PBS authority approval for PBS items excluded from the
online service.
Contact the Department of Veterans’ Affairs (DVA) to request Repatriation PBS (RPBS) authority approval.
This includes:
the pharmacist or patient copy, that records the prescriber, patient and pharmaceutical benefit item.
This prescription is given to the patient to be dispensed at their pharmacy
the prescriber’s copy, which is kept for 12 months. This copy must record the daily dose, details of the
disease, clinical justification for using the item, the patient's age (if the patient is a child) and whether the
patient already received an authority for this pharmaceutical benefit
We will return posted applications that cannot be approved without this information. If the matter can be
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Authority PBS prescriptions approved by phone or online must include the authority approval number on the
PBS prescription so the approved supplier can dispense the medication. If you are granted approval but decide
not to continue with the treatment, let us know quickly or cancel the authority approval online.
For authority required (STREAMLINED) prescriptions, the streamlined authority code must be written on the
PBS/RPBS prescription form. This allows the pharmacist to supply the medication as a PBS benefit.
Streamlined authorities
The Schedule of Pharmaceutical Benefits (the Schedule) identifies certain items as 'authority required
(STREAMLINED)'. Prescriptions for listed quantities or repeats for these items do not require prior approval
Prescribers can find the streamlined authority code in the Schedule next to the text that describes the
Prior approval must be sought for increased quantities or repeats. Either contact us or the DVA.
location.
on this page
About Medicare provider numbers
Applying for your initial Medicare provider number
Processing times for applications
Using your Medicare provider number
Applying for additional Medicare provider numbers
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claim Medicare benefits for services you provide at a particular practice location
refer patients to another practice where they can claim a Medicare benefit, such as:
o to another health professional
o for diagnostic imaging, or
o for pathology services
If you’re registered in multiple health professions, we usually issue a separate number for each profession.
It’s important to get your application in early. The processing timeframe for applications is up to 6 weeks
When you register for a provider number, it’s important you give us your contact details and supporting
documents. If you are intending on claiming Medicare benefits, it’s important you give us your bank account
Depending on your profession, there are different forms you need to complete:
Allied health professional - Application for an initial Medicare provider / registration number for an
Allied Health Professional form
Dentist - Application for an initial Medicare provider number for a dentist, dental specialist or dental
prosthetist form
Medical practitioner - Application for an initial Medicare provider number for a medical practitioner
form
Midwife/nurse practitioner - Application for a Medicare provider number or PBS prescriber number
for a midwife or nurse practitioner form
Optometrist - Application for an initial Medicare provider number for an Optometrist form
Orthoptist - Application for a Medicare provider/registration number for an orthoptist form
If you’re a new health professional you may also need to register with the Australian Health Practioner
Regulation Agency (AHPRA).
Make sure you’re using the most current form from our website so your application isn’t delayed.
Applications are processed in the order we receive them. We have dedicated staff working hard to process
You’ll get a letter from us once your application has been processed.
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Applications from health professionals registered with us as a General Practitioner or Specialist can generally
claim from the date requested on their application. This means these providers can start working but should
We’ll confirm in writing the type of access granted and your eligibility to access Medicare benefits. You need an
additional Medicare provider number for each location where you provide, refer or request Medicare services.
Let us know immediately when you stop practising at a certain location to make sure your Medicare provider
You should claim for Medicare benefits when you're working in a private capacity and not getting other
You can also update your bank account details and contact details using HPOS.
Related services
HPOS
Medicare provider number for overseas trained doctors and foreign graduates
Practice Incentives Program
Related subjects
DVA program information for health professionals
Medicare information for health professionals
The OECD Health Care Quality Review of Australia says the Australian health system is too complicated for patients to navigate, and this is amplified by a split in
funding and responsibilities between the federal and state and territory governments.
However, with an ageing population and the anticipated rise in chronic disease, Australia needs to strengthen primary health care to better co-ordinate the care of
patients. Poor co-ordination of care increases the risk of medical errors that are unacceptable to patients and costly for the health system.
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Evidence of Australia’s need to strengthen primary health care can be seen from the hospitalisation rates for respiratory disease such as asthma and chronic obstructive
pulmonary disease which are considerably higher than the OECD average.
One option to ease the fragmentation of the system is to devolve responsibility for delivering primary care to the states and territories, to better align it with hospital and
community services. In turn, the federal government’s role in steering the health system should be enhanced.
Australia should also emphasise the role of general practitioners (GPs) as care co-ordinators for patients with chronic conditions, and promote a system that enables
patients to receive care from a multidisciplinary team of health professionals.
Head of the OECD Health Division, Francesca Colombo, said adopting a national approach to quality and performance could ease some of the system’s complexity.
“This could include an enhanced federal government role in steering policy, funding, co-ordination and performance monitoring. The states and territories in turn could
take on a strengthened role as health service providers, developing innovation responsive to local population need” she said.
Despite these challenges, Australia compares favourably to its OECD peers on many indicators of health. At 82.2 years, life expectancy is the sixth highest in the OECD.
Australia has the fourth lowest smoking rate in the OECD of 12.8%, and the heart disease mortality rate is well below the OECD average. The country’s breast cancer
five-year survival rate of 88% is behind that of only Sweden, the United States, Norway and Finland.
Australia achieves good health outcomes relatively efficiently, with health expenditure at 8.8% of GDP, about the same as the OECD average. However, Australia is the
fifth most obese country in the OECD, with 28.3% of Australians aged 15 and over obese, considerably higher than the OECD average of 19%. To improve the quality of
its health care system, Australia should also:
Build on the Practice Incentives Programme with a more robust blended payment system comprising more indicators of quality and outcomes, to
provide GPs with financial incentives to improve the quality of care and patient outcomes;
Require GPs to begin reporting data on a wide range of indicators linked to quality and patient outcomes and publish more indicators of quality online,
including hospital-level data for adverse events and the results of patient experience surveys for public and private hospitals;
Expand the scope and alignment of the National Safety and Quality Health Service Standards not only in hospitals, but also across primary health
care, long-term care and mental health services;
Improve the quality of rural and remote health care by extending Australia’s basic information set on health service needs, service use and outcomes
to rural and remote settings.
Journalists can access the report’s main findings and recommendations as well as the full report here.
For further information please contact Ian Forde (tel + 33 1 45 24 81 24) or Francesca Colombo (tel + 33 1 45 24 93 60).
OECD Reviews of Health Care Quality examine what works and what doesn’t in countries, benchmarking their efforts and providing advice on reforms to improve quality
of health care. The country reviews will be followed by a final summary report on the lessons and good practices relevant to all governments.
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.
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