Skip to main content

Table 1 Federal health care policy changes (cut points)

From: Development of a health care policy characterisation model based on use of private health insurance

Federal Health Policy "Cut Points"
Cut Point Commencement (and duration) of initiative* Description of Initiative
1 Sept 1981 (- Jan 1984) Abolition of free public hospital care
2 Feb 1984 (- Oct 1986) Medicare introduced (Universal bulk billing and free public hospital care restored)
   Out of hospital rebate set at 85% of scheduled fee
   Maximum rebate set at $10
   Levy set at 1%
3 Nov 1986 (- June 1993) Medicare levy increased to 1.25%
   Out of hospital rebate @ 85%/$20
   GAP set at $150/annum
   In hospital rebate set at 75% with no maximum
   Private hospital insurance to cover remaining 25%
4 1993 (- 1995) Medicare Levy increased to 1.4%
5 1995 (- 1997) Medicare Levy increased to 1.5%
   0.2% Surcharge introduced to pay for a guns "buy back" following Port Arthur massacre
6 1997 (-1999) Private Health Insurance Incentive Scheme: Surcharge of 1% introduced for high income household without PHI.
   GAP cover policies allowed (No GAP and known GAP)
   Simplified billing (use of billing agents)
7 Jan 1999 (- June 2000) Uncapped 30% PHI† rebate for hospital and ancillary benefits with no means test
8 July 2000 (- Present) Lifetime Health Cover: Differential premiums allowed based on age at initial premium.
   Informed Consent: Patients provided with quotes on costs prior to procedure commencement
  1. * Financial year unless otherwise indicated
  2. † Private Health Insurance