A transformative $7.9 billion change to Medicare is set to launch on Saturday, enabling millions of Australians to visit their doctors at no cost.

Starting November 1, general practitioners will benefit from increased bulk-billing incentives, extending free treatment to all individuals holding a Medicare card, beyond just children and concession cardholders.

This initiative is a significant aspect of the Albanese administration’s $8.5 billion revamp of Medicare, a major Labor election commitment. The goal is to reduce patients’ out-of-pocket expenses and reverse the trend of decreasing bulk-billing rates.

Numerous GP clinics nationwide, which previously charged gap fees, have already announced plans to transition to bulk-billing.

“Approximately 900 practices have informed the government that by this week, they will transition from charging gap fees to becoming fully bulk-billing practices,” stated Health Minister Mark Butler.

“This means every GP in these practices will bulk bill every patient who walks through their doors,” he added.

Many more clinics are expected to follow suit.

‘A whole lot of practices that I’m sure will be making the decision to do this but just haven’t informed the government yet,’ Butler added. 

Boosting bulk-billing rates was a key election pledge of the Albanese government, as part of its planned $8.5billion Medicare overhaul. Pictured is Prime Minister Anthony Albanese

The Medicare overhaul will allow millions of Aussies to see their doctor for free

‘We’re very confident there’s going to be a big expansion of bulk billing.’

The incentives are geared towards bringing the number of fully bulk-billed practices in Australia to 4,800 – triple the current number. 

Bulk-billing rates plummeted to 78 per cent in 2024 – down from 89 per cent in 2020. 

The Albanese government has since set a target of making nine out of ten GP visits bulk-billed by the end of the decade. 

The overhaul will not only benefit patients, but also the GPs and practices, according to the minister.

‘Two years ago, a full-time, fully bulk-billing GP would have been earning about $280,000 a year after they paid their practice costs,’ Butler added.

‘From this weekend, they’ll be earning $405,000 a year – a $125,000 increase. This investment is obviously good for the Medicare system, good for patients, but it’s also good for GPs themselves.’

However, the government’s announcement has raised questions from doctors’ groups and the Opposition, who argue there is little evidence the shift will be as widespread as claimed.

Hundreds of GP clinics are expected to switch to bulk billing within days, according to health Minister Mark Butler (pictured)

During Senate estimates earlier this month, Health Department officials admitted there is no formal benchmark to measure the policy’s success until after the next election.

Officials added that it could take up to four years for most clinics to fully transition to bulk-billing.

A joint ABC and Royal Australian College of GPs survey earlier this year found only a small fraction of doctors believed they could afford to bulk bill more patients under the new incentives.

Many cited rising costs, low rebates and staffing shortages as ongoing pressures on general practice.

Shadow Health Minister Anne Ruston accused Labor of overstating the policy’s impact and misleading voters with its promise that GP visits would be ‘free’.

‘Anthony Albanese told Australians they’d only need their Medicare card, not their credit card,’ Ruston said.

‘But the government doesn’t expect to reach its targets until after the next election, and out-of-pocket costs are still rising.’

Assistant Health Secretary Daniel McCabe also conceded earlier this month that visits would likely become more expensive for those without bulk-billed appointments. 

‘We will have outlier GPs that are charging higher out-of-pocket expenses and if they continue to do that, the average for those subset of patients will be higher for a period of time,’ he told a Senate estimates hearing. 

The average out-of-pocket cost for a GP visit was nearly $50 last financial year.