NSW unveils $189M plan to expand bulk billing and ease healthcare costs
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With the increasing costs of living across the globe, the importance of affordable healthcare has become more pronounced than ever
In a groundbreaking move that's set to benefit the wallets of New South Wales residents, the state government has announced a significant $189 million budget measure aimed at making doctor's visits more affordable.
This initiative is not only a first for NSW but an Australian-first approach to healthcare funding that could set a precedent for other states.
The NSW government's innovative plan incentivised general practitioners (GPs) to bill their patients in bulk, reducing the financial burden on individuals seeking medical care.
Bulk billing is a system in which doctors bill Medicare directly and accept Medicare benefits as full payment for their services.
Aged Care and Health Minister Mark Butler has highlighted the positive impact of the government's investments in Medicare, citing an impressive '950,000' additional doctor visits as a result.
This new measure is expected to further increase accessibility to healthcare by encouraging more GPs to offer bulk-billed consultations.
Under the new scheme, GP clinics that achieve a bulk-billing threshold of 80 per cent in Sydney and 70 per cent in the rest of NSW will be eligible for a payroll tax rebate for contractor GPs.
This is a strategic move to alleviate the financial pressures on GP clinics, which, until now, have been under a moratorium that prevented the collection of payroll tax.
The moratorium is set to expire on 4 September, and the rebate is intended to prevent clinics from passing on potential payroll tax costs to patients.
NSW Health data suggests that even a 1 per cent decrease in bulk billing could lead to an additional 3,000 emergency department presentations, further straining public hospitals.
By maintaining high rates of bulk billing, the government aims to keep emergency departments from becoming overwhelmed and ensure that residents can receive timely and affordable care in a GP setting.
NSW Finance Minister Courtney Houssos has emphasised that this policy will work 'in concert' with the federal government's $1.5 billion measure, which has increased the amount GPs receive for standard bulk-billed consultations by 34 per cent.
‘We want to be able to support our GPs who are providing bulk-billing services,’ she said.
‘The previous budget from the federal Labor government has increased bulk-billing rebates, but they only started to flow to doctors in November last year.’
‘We expect that over time, they will continue to have effect and hopefully we will see increases in bulk billing.’
The NSW Opposition Leader Mark Speakman has expressed scepticism about whether the rebates will directly lead to cheaper GP visits.
‘It will not make GP visits cheaper. It just won’t increase the cost of going to a GP, which might otherwise have been the case if the payroll tax had been enforced,’ he stated.
Peak bodies like the Australian Medical Association (AMA) and the Royal Australian College of GPs (RACGP) welcomed the changes.
‘Legislating “no retrospectivity” will provide certainty for practices and will minimise the risk of more closures of general practices in NSW,’ Australian Medical Association NSW Director Michael Bonning said.
‘Unfortunately, general practice continues to struggle with decades of underfunding from the previous Coalition government.’
Rebekah Hoffman, chair of the RACGP NSW and ACT, thanked the NSW government for recognising the harm a retrospective tax could have had on general practices and patients.
‘The RACGP thanks Ministers Houssos and (Health Minister Ryan Park) for negotiating with the college in good faith and for understanding the devastating impact retrospective tax would have on NSW practices, patients and our state’s health system,’ she said.
‘We appreciate the very tight budgetary constraints the NSW government is under and know this decision wasn’t taken lightly.’
In related news, a former deputy chief medical officer criticised Victoria and NSW state revenue offices for imposing a payroll tax on independent GPs, calling it a tax on patients.
He warned this could reduce bulk billing and accused the states of exploiting a recent court ruling. More details are available here.
What are your thoughts on this new measure? Have you experienced the benefits of bulk billing before? Share your experiences and opinions in the comments below.
In a groundbreaking move that's set to benefit the wallets of New South Wales residents, the state government has announced a significant $189 million budget measure aimed at making doctor's visits more affordable.
This initiative is not only a first for NSW but an Australian-first approach to healthcare funding that could set a precedent for other states.
The NSW government's innovative plan incentivised general practitioners (GPs) to bill their patients in bulk, reducing the financial burden on individuals seeking medical care.
Bulk billing is a system in which doctors bill Medicare directly and accept Medicare benefits as full payment for their services.
Aged Care and Health Minister Mark Butler has highlighted the positive impact of the government's investments in Medicare, citing an impressive '950,000' additional doctor visits as a result.
With the new policy, the NSW government hoped that GP clinics across NSW would create more bulk-billing appointments. Credit: Unsplash
This new measure is expected to further increase accessibility to healthcare by encouraging more GPs to offer bulk-billed consultations.
Under the new scheme, GP clinics that achieve a bulk-billing threshold of 80 per cent in Sydney and 70 per cent in the rest of NSW will be eligible for a payroll tax rebate for contractor GPs.
This is a strategic move to alleviate the financial pressures on GP clinics, which, until now, have been under a moratorium that prevented the collection of payroll tax.
The moratorium is set to expire on 4 September, and the rebate is intended to prevent clinics from passing on potential payroll tax costs to patients.
NSW Health data suggests that even a 1 per cent decrease in bulk billing could lead to an additional 3,000 emergency department presentations, further straining public hospitals.
By maintaining high rates of bulk billing, the government aims to keep emergency departments from becoming overwhelmed and ensure that residents can receive timely and affordable care in a GP setting.
NSW Finance Minister Courtney Houssos has emphasised that this policy will work 'in concert' with the federal government's $1.5 billion measure, which has increased the amount GPs receive for standard bulk-billed consultations by 34 per cent.
‘We want to be able to support our GPs who are providing bulk-billing services,’ she said.
‘The previous budget from the federal Labor government has increased bulk-billing rebates, but they only started to flow to doctors in November last year.’
‘We expect that over time, they will continue to have effect and hopefully we will see increases in bulk billing.’
The NSW Opposition Leader Mark Speakman has expressed scepticism about whether the rebates will directly lead to cheaper GP visits.
‘It will not make GP visits cheaper. It just won’t increase the cost of going to a GP, which might otherwise have been the case if the payroll tax had been enforced,’ he stated.
Peak bodies like the Australian Medical Association (AMA) and the Royal Australian College of GPs (RACGP) welcomed the changes.
‘Legislating “no retrospectivity” will provide certainty for practices and will minimise the risk of more closures of general practices in NSW,’ Australian Medical Association NSW Director Michael Bonning said.
‘Unfortunately, general practice continues to struggle with decades of underfunding from the previous Coalition government.’
Rebekah Hoffman, chair of the RACGP NSW and ACT, thanked the NSW government for recognising the harm a retrospective tax could have had on general practices and patients.
‘The RACGP thanks Ministers Houssos and (Health Minister Ryan Park) for negotiating with the college in good faith and for understanding the devastating impact retrospective tax would have on NSW practices, patients and our state’s health system,’ she said.
‘We appreciate the very tight budgetary constraints the NSW government is under and know this decision wasn’t taken lightly.’
In related news, a former deputy chief medical officer criticised Victoria and NSW state revenue offices for imposing a payroll tax on independent GPs, calling it a tax on patients.
He warned this could reduce bulk billing and accused the states of exploiting a recent court ruling. More details are available here.
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