Chapter 4: Australia’s health system Flashcards
What is sustainability?
Sustainability refers to meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.
What is access?
Access in healthcare is about people being able to receive healthcare that they need at an appropriate time and location, without barriers, such as location, cost, and culture interfering.
What is equity?
Equity refers to being fair and just, which includes catering for different people’s needs.
What is Medicare?
Medicare is Australia’s universal health insurance scheme, which provides all Australian residents (and some overseas visitors) access to necessary healthcare at a subsidised cost, or for no cost at all.
Who can access Medicare?
- all permanent Australian residents
- individuals from countries with a reciprocal agreement.
What does Medicare cover?
- General practitioner (GP) consultation
- Treatment and accomodation as a public patient in a public hospital
- Eye tests performed by optometrists
- X-rays
- Pathology tests (blood tests)
What does Medicare not cover?
- Dental examinations for individuals over 18
- Accomodation costs in a private hospital
- Alternative therapies (chiropractor, physiotherapy, massages)
- Ambulance services
- Hearing aids, glasses and contact lenses
How does Medicare promote sustainable?
- Medicare promotes sustainability by only covering ‘clinically necessary’ procedures under the Medicare Benefit Schedule which reduces waste in the health system by prioritising the most pressing needs for current and future generations.
- The Medicare Levy increased from 1.5 to 2 percent to assist in providing the necessary funds to maintain Australia’s health system.
How does Medicare promote access?
- Medicare promotes access through bulk billing, which is when a service provider (such as a GP) does not charge the patient more than the schedule fee for their service.
- Medicare provides funding for telephone and video consultations which can assist those living outside major cities in accessing health services.
How is Medicare funded?
Medicare is funded by the Medicare Levy Surcharge (high income earners without private health insurance), general taxation (general income tax revenue) and Medicare Levy (most tax payers pay 2% of their tax goes towards Medicare). This allows it to fund for essential medical services for Australians. This includes surgery which can treat disease.
How does Medicare promote equity?
- Medicare promotes equity through the Medicare safety net. Once an individual or family’s out of pocket expenses have reached the threshold amount, the Medicare safety net provides cheaper services for the remainder of the year for that individual or family.
- Mental Health Treatment Plans - those with mental health disorders are eligible for ten individual and ten therapy sessions per calendar year with the cost covered by Medicare.
What are the advantages of Medicare?
- Every Australian citizen and permanent resident can access Medicare
- Medicare provides access to basic healthcare at little or no cost
- The reciprocal agreement enables Australian citizens to access subsidised/free healthcare in selected countries
- Patients can choose their doctor for out-ofhospital services.
What are the disadvantages of Medicare?
- Significant wait times for non-emergency treatments
- Patients are unable to choose doctors for in-hospital treatments
- Individuals will often have to pay more for various healthcare services as Medicare often doesn’t cover the full amount
- Individuals do not have a choice of doctor for in-hospital treatment in the public system
- Does not cover many alternative therapies, such as physiotherapy.
What is Private Health Insurance (PHI)?
Private health insurance is an optional type of health insurance which people can have in addition to Medicare, in which members pay a premium in return for payment towards services that are not covered by Medicare.
What does PHI cover?
- osteopathy
- physiotherapy
- remedial massages
- ambulance services
What are the Private health
insurance incentives
schemes?
- Medicare levy surcharge: The Medicare levy surcharge is a tax for people who do not have private health insurance, and earn over a certain amount.
- Private health insurance rebate: The government refunds individuals part of the cost of their insurance premium. This rebate is dependent on how much someone earns: the more someone earns the less money they will get back.
- Lifetime health cover loading: Once an individual turns 30, the cost of private health insurance will cost an extra two percent each year that the individual does not take up private health insurance.
How does PHI promote sustainability?
- Private health insurance reduces the strain on the public system, specifically Medicare.
- The various private health insurance incentive schemes increase the number of people who take up private health insurance such as the Lifetime health cover loading.
How does PHI promote access?
- Private health insurance enables people to have greater access to healthcare services not covered by medicare.
- Waiting times for elective surgeries are shorter for all private patients.
- The waiting times for elective surgeries are quicker for everyone, as people in the public health system don’t have to wait as long when there are people using the private health system.
How is PHI funded?
Private health insurance is largely funded by the premiums paid by customers.
How does PHI promote equity?
- The private health insurance rebate demonstrates equity as lower income earners are entitled to a greater rebate on the cost of their premium.
- Medicare levy surcharge is only applicable to higher-income earners who do not take out private health insurance. This demonstrates equity as it relieves lower-income earners from paying this surcharge.
What are the advantages of PHI?
- Patients are able to choose their doctor as a
private patient in hospital (public or private). - Reduced waiting times for non-emergency treatments.
- Patients can choose which hospital they want to be treated at.
- Patients are more likely to have a private room.
- It reduces pressure on the public health system.
- There is financial coverage for a wider range of services
What are the disadvantages of PHI?
- Cost of premiums can be expensive.
- There may still be out-of-pocket costs, even with extensive coverage.
- Waiting periods may apply for some services.
- You may pay for services that you will not claim.
What is the Pharmaceutical Benefits Scheme (PBS)?
The Pharmaceutical Benefits Scheme (PBS) is a program run by the Australian government that subsidises various essential prescription medicines for Australian citizens, permanent residents, and visitors from selected countries.
Who can access PBS?
The PBS is available to all Australian citizens and permanent residents who have a valid Medicare card. The PBS is also available to visitors from countries that are part of the Medicare Reciprocal Agreement.
