Australia does not plan to create a two-tier healthcare system by bringing in private insurers for GP care. The Health Minister shuts down all calls for letting private insurers cover GP care.
Calls to lift the ban on private health insurers subsidizing GP visits have been dismissed by Health and Aged Care Minister Mark Butler. This response follows the release of the 2025 Cleanbill survey, highlighting rising out-of-pocket costs and decreasing bulk-billing rates for patients visiting general practitioners (GPs). Australian law currently prohibits private health insurance from covering out-of-hospital medical services, like GP visits, as these are meant to be covered by Medicare. Despite the ban, private health insurance enrollment continues to rise, with around 54.7% of the population having some form of general treatment cover as of September 30, 2024—a 2.3% increase in a year.
Matthew Koce, Chief Executive of Members Health, advocates for the ban’s removal, arguing it is outdated and contributes to financial barriers for necessary GP visits, which are crucial for overall health. He notes that while private insurers can cover dental or optical services, they cannot assist with GP costs, ultimately impacting access to primary care.
Minister Butler defended the existing system, emphasizing the importance of preventing a two-tier system in primary care to maintain the quality of Australia’s healthcare, which is globally recognized. He stated that any changes to allow private health insurance coverage for GP visits would significantly alter the Medicare framework.
While private insurer Bupa has begun offering free telehealth consultations, this initiative is still bound by Medicare regulations, allowing coverage only under specific conditions. Butler acknowledged ongoing innovative efforts from private insurers to enhance member access to primary healthcare and prevention services.
