Grattan Institute urges federal government to strip Medicare funding from greedy health specialists

Specialist fees have soared 73 per cent in real terms since 2010. Now there’s a push to have the doctors who slug patients with excessive fees stripped of their Medicare funding.

Specialist doctors that slug patients with excessive fees would be stripped of their Medicare funding and named and shamed under a bold new proposal to ensure Australians can access the care they desperately need.

One in 10 patients are forking out almost $600 a year in specialist fees, which have soared 73 per cent in real terms since 2010, according to a new Grattan Institute report.

Psychiatry, endocrinology, cardiology and pediatrics had the largest average out-of-pocket cost per initial consultation with specialists who charge more than triple the Medicare schedule fee.

The eye-watering costs are resulting in about 1.9 million Australians delaying or skipping vital care, causing missed diagnoses and avoidable pain, which is putting increased pressure on the already-strained hospital network.

The Grattan Institute’s five-point plan is urging the federal government to withdraw Medicare funding from specialists who charge excessive fees.

Report lead author Peter Breadon said millions of people needing to see a specialist doctor either had to pay high fees or wait too long for care.

“The specialist system isn’t working and Australians – especially poorer Australians – are paying the price,” he said.

“Without action, fees and waiting times will only get worse as Australians get older and sicker.”

In a five-point plan to ensure people can access the healthcare they need, the Grattan Institute is urging the federal government to withdraw Medicare funding from specialists who charge excessive fees and publicly name them.

The move is estimated to save taxpayers up to $170m a year, with the think-tank calling for the consumer watchdog to launch a probe into specialists’ costs and fees.

It says an extra $155m in federal funding is needed to bolster specialist training numbers, especially in rural areas, proposing that a national health workforce planning body be established to set targets.

Under the proposal, the public system — which provides only a third of specialist services — would be modernised and a further $500m in state and federal funding invested to expand specialist clinics, creating a million extra appointments in areas with the least care.

GPs would also be able to get advice from other specialists to provide greater care, including for chronic illnesses, avoiding 68,000 referrals annually.

This would save Australians $4m in out-of-pocket costs, but come at a cost of $26m a year as GPs and other specialists would be paid for their time.

Specialist qualifications from more countries with comparable health systems would also be recognised, making it simpler for overseas-trained specialists to work in Australia to address workforce shortages.

“Targeted investment and sensible reforms will ensure every Australian can get specialist treatment when they need it,” the report states.

Originally published as Grattan Institute urges federal government to strip Medicare funding from greedy health specialists