Health Care in Australia

In Australia the current system, known as Medicare, was instituted in 1984. It coexists with a private health system. All legal permanent residents are entitled to free public hospital care. Treatment by private doctors is also free when the doctor direct bills the Health Department (Bulk Billing). Medicare is funded partly by a 1.5% income tax levy (with exceptions for low-income earners), but mostly out of general revenue. An additional levy of 1% is imposed on high-income earners without private health insurance. There is an uncapped 30% subsidy on private health insurance. As well as Medicare, there is a separate Pharmaceutical Benefits Scheme under which listing and a government subsidy is dependent on expert evaluation of the comparative cost-effectiveness of new pharmaceuticals. In 2005, Australia spent 8.8% of GDP on health care, or US$3,181 per capita. Of that, approximately 67% was government expenditure.