Medicare, the country’s cornerstone of public healthcare since 1984, is facing a crisis. The system that once revolutionised access to healthcare for Australians is now struggling under the weight of an ageing population and a surge in chronic diseases.
The Australian Medical Association (AMA) has sounded the alarm, warning that without urgent reform, Medicare may reach ‘a point of no return.’
The association’s concerns are echoed by healthcare professionals and policy experts who have observed the system’s inability to meet the complex needs of today’s patients.
The current structure of Medicare, with its reportedly outdated general practitioner (GP) consultation items, is failing to provide the necessary care, particularly for those with multiple health issues. This has led to hospitals becoming increasingly congested as patients seek help for conditions that should be managed in primary care settings.
The AMA’s president, Dr Danielle McMullen, has highlighted the stark contrast between the healthcare landscape of the 1980s and today: ‘Medicare was revolutionary when it was introduced in the 1980s, but with our ageing population and growing chronic disease rates, GP consultation items have become out-of-date.’
She continues, ‘Now, of course, we’re in a time where people have more chronic diseases, more mental illness, and even the treatment of simple health conditions is more complicated than it was back in the eighties. And yet we’ve got the same old structure of Medicare.’
This reported inadequacy is most acutely felt in rural and remote communities, often referred to as ‘GP deserts.’ Here, residents face a scarcity of medical services, and the lack of bulk billing options exacerbates the problem.
Peter Breadon from the Grattan Institute points out this ‘perverse reality’ that ‘we have the least care in those areas that need it most.’
In addition, Sharon Friel, a professor of health equity at the Australian National University, warns that the inability to access adequate GP care could lead to more serious illnesses and further strain on hospitals.
‘We’ll see more people going into the hospital presenting with conditions that really should not be in the hospital; they should not be in the emergency department,’ she explains.
‘The GP or the wide primary healthcare system is so important for equitable access, timely treatment, and reducing the financial cost to the system.’

So, what can be done to save Medicare from the brink of collapse? The AMA’s Modernise Medicare campaign proposes a multi-faceted approach:
1. Increased funding and resourcing to support longer GP appointments,
2. A new seven-tier standard consultation structure to accommodate the varying complexities of patient needs,
3. A multi-disciplinary approach to general practice healthcare to address workforce challenges, and
4. An additional 500 training rotations in general practice for early career doctors and 500 more GP training places to combat the predicted shortfall of 10,600 GPs by 2031–32.
Dr Michael Wright, president of the Royal Australian College of General Practitioners, agrees that longer consultations are essential, especially for the ageing population with multiple chronic health conditions.
He also emphasises that ‘Increasing the rebate will make it easier for GPS to bulk bill these longer consultations and it will also decrease the out-of-pocket costs for people who don’t have access to bulk billing.’
The Health Minister’s office has responded, highlighting the Albanese government’s investments that have led to more bulk billing, the establishment of Medicare Urgent Care Clinics, and an increase in doctors joining the healthcare system—efforts that have resulted in an additional 5.8 million bulk-billed visits since November 2023.
Despite these improvements, the government acknowledges that there is still much work to be done: ‘Although we’re not out of the woods yet and there is a lot of work still to do, we are seeing things turn around in those areas that we need.’
The AMA’s call to action is clear. Dr McMullen highlights that Medicare is at a ‘tipping point’ and ‘unless the government acts now, the gap will be so wide that no government will be able to catch up.’
She adds, ‘We’re reaching a point of no return where after years of a Medicare freeze and then inadequate indexation, those Medicare rebates just don’t meet the cost of providing care.’
As we consider the path forward, we invite our YourLifeChoices readers to share their experiences with Medicare. Have you faced challenges accessing GP care? Do you believe the proposed reforms will make a difference? Join the conversation and let us know your thoughts in the comments below.
Also read: How the Medicare referrals system may be secretly draining your wallet
People complain about high doctors’ fees, but principal doctors struggle to pay their doctors, staff, rent and other costs. I’d been at a much-loved doctors’ surgery for 23 years; sadly the principal doctor had to close it, could not afford to continue. Was interviewed on tv; other doctors also interviewed, said they were finding it difficult. Health is a Government responsibility, they have to invest. Tax the rich, make health a priority.
I agree that GP ‘s are struggling especially those that want to be like the old family doctor. Part of the problem is the fees charged by specialist and the costs associated with accessing private hospitals which are ridiculous, the cost of private health insurance has gone through the roof. Pre Medicare my private healthcare was $6 per month, this was in 1968 and in those days a visit to the Dr cost $2:50 we got $2:00 back, it’s not just older people that are a burden on the health system, and suggestions of taxing the rich more seems to be the go to to fix all our problems, there are plenty of areas that should be trimmed to fix our healthcare but I would be attacked if I mentioned them here
It’s amazing that there is not one mention of high immigration. This Federal Government has over seen a ridiculous escalation in migration numbers not to mention the universities addicted to high international student numbers. Sit in any public hospital emergency dept and/or gp clinic and watch the procession of people. Might be an eye opener for some.
One serious issue that doesn’t seem to receive any attention are the guidelines for chronic health management plans that restrict people to 6 sessions a year often with a hefty “gap” involved. As the article states we have an “ageing population with multiple chronic health conditions”. It quotes the AMA president as saying we have more chronic diseases than when Medicare was established. Current arrangements simply do not reflect this/