PDHPE

Home > PDHPE > Core 1 - Health Priorities in Australia > What roles do health care facilities and services play in achieving health for all Australians? > Role of health care facilities and services

Core 1: Health priorities in Australia

What role do health care facilities and services play in achieving better health for all Australians?

Funding of health care in Australia

The Australian health system is complex, with many different providers of services, and a range of funding and regulatory mechanisms. Funding is provided by the Commonwealth (Federal) Government, State and Territory governments, health insurers, individual Australians and a range of other sources.

The Commonwealth’s funding includes two national subsidy schemes - Medicare and the Pharmaceutical Benefits Scheme (PBS). These schemes cover all Australians and subsidise their payments for medical services and for a high proportion of prescription medicines bought from pharmacies. The Commonwealth and State Governments also jointly fund public hospital services so they are provided free of charge to patients. Between them, these three funding provisions aim to give all Australians, regardless of their personal circumstances, access to adequate health care at an affordable cost. Successive governments for almost 30 years have supported these arrangements, with minor modifications.

Medicare is a system that is partly funded by taxpayers, who pay what is known as a Medicare levy as part of their tax. Regardless of what fee is charged by the medical practitioner, every Australian is covered for 85% of a scheduled fee. This is a set amount determined by the government for each medical service that is covered by Medicare.

Private health insurance is available for people who wish to be covered for private hospital fees or ancillary services such as physiotherapy and optical appliances (e.g. glasses, contact lenses etc).

Student activity
There are two health insurance systems in Australia. These are private health insurance and the government health insurance (Medicare). Both of these systems provide some monetary relief for costs incurred through the use of health services. Describe the following initiatives and assess the effectiveness of their introduction in relieving the burden of costs in providing health care services: 30% Government Rebate Scheme. Lifetime Health Cover. Medicare Levy Surcharge. Check your answers Using the NIB and the MBF websites, evaluate which insurer and what level of health cover would best suit each of the following individuals or groups: 18 year-old single female. 33 year-old married couple with a 4 year-old child. 47 year-old married couple with three children, all of whom are over 14 years-old. 27 year-old gay couple with no dependents N.B: On the NIB site go to the Quick Quote Option and on the MBF site go to the Get a Health Cover quote. Click on the following link to view Health budgets at a glance Identify which items and figures relate to health care expenditure and which figures relate to health promotion expenditure. What conclusions can be drawn from this budget? Propose some possible reasons for the imbalance between funding to cure sickness and funding for the prevention of illness. Debate the need to increase funding for health promotion initiatives to reduce the financial burden on the Australian health care system. Check your answers

Student activity

There are two health insurance systems in Australia. These are private health insurance

and the government health insurance

(Medicare). Both of these systems provide some monetary relief for costs incurred through the use of health services.

Describe the following initiatives and assess the effectiveness of their introduction in relieving the burden of costs in providing health care services:
Check your answers
Using the NIB and the MBF websites, evaluate which insurer and what level of health cover would best suit each of the following individuals or groups:
- 18 year-old single female.
- 33 year-old married couple with a 4 year-old child.
- 47 year-old married couple with three children, all of whom are over 14 years-old.
- 27 year-old gay couple with no dependents
N.B: On the NIB site go to the Quick Quote Option and on the MBF site go to the Get a Health Cover quote.
Click on the following link to view Health budgets at a glance
1. Identify which items and figures relate to health care expenditure and which figures relate to health promotion expenditure. What conclusions can be drawn from this budget? Propose some possible reasons for the imbalance between funding to cure sickness and funding for the prevention of illness.
2. Debate the need to increase funding for health promotion initiatives to reduce the financial burden on the Australian health care system.
Check your answers