The Royal Australian College of GPs (RACGP) has called on the Federal Government to establish an independent pricing authority to ensure Medicare rebates accurately reflect the true cost of delivering care.
RACGP President Dr Michael Wright said the College’s pre-budget submission highlights the need for an independent body to ensure rebates are backed by Australia’s healthcare data and free of partisan political intervention/influence.
“For decades, patients’ Medicare rebates have failed to keep pace with inflation and rising operational costs, driving up out-of-pocket expenses and creating barriers to access,” he said.
“GPs work at the centre of multidisciplinary teams, but for this to function properly, general practice must be funded sustainably.
“Instead, governments on both sides of politics have set rebates based on short-term political imperatives rather than from a sound evidence base. The cost of delivering primary care is undervalued – even simple care is underfunded, and complex care even more so.
“An independent pricing authority, as recommended by the Government’s 2024 Scope of Practice review, is needed to protect the health and welfare of current Australians and future generations.”
Nearly one in 10 Australians delay GP visits due to cost, with rates even higher among those managing chronic conditions. Without a transparent, evidence-based mechanism for pricing, affordability and equity in primary care will continue to decline.
“Recent Medicare investments have shown the value the current Federal Government places on primary healthcare, but support from the current government doesn’t guarantee the same level of commitment from future governments,” Dr Wright said.
“For many practices, moving to become a fully bulk billing practice is not just a financial decision – it is about trust.
“An independent authority enshrined in legislation would provide the certainty many GPs need when making financial decisions about the future of their practices. It would provide transparent, evidence‑based decision‑making that directs funding where it’s most effective and most needed.
"A well-resourced primary care sector reduces hospital demand by preventing avoidable admissions and emergency presentations, delivering significant savings to the health system while improving patient outcomes.
Every year, more than 22 million Australians visit a specialist GP, making general practice the most accessed health service in the country.
The RACGP’s Health of the Nation report shows that 99% of people can see a GP when needed, and 80% have a preferred GP, underscoring the vital role of trusted GP–patient relationships in delivering coordinated, continuous and comprehensive care.
“General practice is the cornerstone of Australia’s healthcare system,” Dr Wright said.
“This budget submission outlines practical, cost-effective measures that will benefit patients, families and communities across the nation.
"Alongside the call for an independent pricing authority, the submission outlines key priorities around targeting funding for patients with complex healthcare needs, building the general practice workforce, equitable health outcomes through research-informed healthcare, and preventing the health impacts of racism.”
~ENDS
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The Royal Australian College of General Practitioners (RACGP) is the peak representative organisation for general practice, the backbone of Australia’s health system. We set the standards for general practice, facilitate lifelong learning for GPs, connect the general practice community, and advocate for better health and wellbeing for all Australians.
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