Key Takeaways
- Australia ranks number one globally in healthcare system performance according to the Commonwealth Fund.
- Despite strong overall performance, areas like accessibility and affordability still require significant improvements.
- Continuous investment and policy updates are essential to maintain Australia’s healthcare standing.
An Introduction to Australia's Medicare System
Australia’s Medicare system was recently named the best-performing health system on the planet. It’s a prestigious accolade awarded by The Commonwealth Fund in 2024 and serves to show the exceptional overall performance of our nation’s healthcare, especially in terms of health outcomes, equity and administrative qualities.
But beyond the headline achievement, what does this ranking actually mean for everyday Australians? Is the praise entirely justified, or are there still a few areas where there could be improvement?
What makes Medicare number one?
The Commonwealth Fund evaluated healthcare systems across several countries, including the Netherlands, the United Kingdom, New Zealand, France, Sweden, Canada, Germany, Switzerland and the United States. Australia topped the list, excelling in several areas like health outcomes and equity.
Health outcomes, in particular, were a big factor in Australia’s top ranking. Australia boasts one of the highest life expectancies globally, which is propped up by strong preventive healthcare measures and good management of chronic diseases. Mortality rates from preventable and treatable conditions are notably lower compared to many other countries as well.
A standout statistic from the Commonwealth Fund’s report was Australia’s exceptional performance in managing COVID-19-related excess deaths among those under 75 years old. In short, Australia was adjudged to be best-in-class globally.
Higher levels of equity
Equity in healthcare is essentially the system’s ability to provide fair access and consistent quality of medical treatment – regardless of income. Medicare wins the day here by being universal healthcare with a strong public hospital network and bulk-billing incentives.
However, the Commonwealth Fund did touch on the noticeable disparity between higher- and lower-income groups in terms of affordability. While overall performance was strong, there’s something of an equity gap, which remains an ongoing concern – especially with Australians struggling to pay for medical treatments or dental care.
Administrative quality
The third contributing factor to Australia’s top ranking was administrative efficiency. Australian healthcare providers benefit from relatively streamlined interactions with Medicare and private health insurers, despite some concerns from healthcare professionals about (unnecessary) bureaucratic processes.
Despite complaints about bureaucracy, Medicare performs better than most of its peers, particularly when compared to the fragmented and lopsided healthcare system in the US. Australian doctors deal with far fewer administrative hurdles in terms of funding and insurance claims too.
Portability
Don’t re-serve waiting periods when you switch to a new health fund or policy
“John was immediately covered for a hip replacement in private hospital because he had already served his waiting periods for joint replacements on his old policy”
Areas that need improvement
Yes, Australia’s public health system is excellent, but it’s not without its flaws. According to the Commonwealth Fund’s report, we rank poorly in two major areas: access to care and care processes (i.e. affordability and timely access to treatments).
1. Accessibility and affordability
While Medicare does provide universal cover, out-of-pocket expenses are a huge challenge for many. Too many people still experience difficulties in getting timely medical care due to the cost barriers. The Commonwealth Fund rated Australia ninth out of 10 in affordability, which should speak for itself.
Australians also have to face substantial co-payments for things like specialist consultations and diagnostic imaging. For example, recent Medicare billing data from the Australian Institute of Health and Welfare revealed that the average proportion of specialist consultation fees covered by Medicare has fallen to just 52%.
As health policy analyst Charles Maskell-Knight puts it: “We have a world-class health system – unless you are unfortunate enough to get ill.”
2. Country versus city healthcare
The disparity in healthcare quality between urban and rural areas remains stark. People living in country and remote locations tend to experience much longer waiting times, less availability of specialists and higher out-of-pocket costs.
Improving healthcare accessibility in these parts of the country is essential if we want to further strengthen our healthcare system. Targeted policy interventions and investments in rural-health infrastructure are just two strategies that could potentially ‘close the gap’ with these disparities.
Recent government initiatives
The Australian Government is no stranger to these challenges, and they’ve rolled out a number of measures to improve public healthcare affordability and accessibility. Health Minister Mark Butler says recent government initiatives, including the increase in bulk-billing incentives, will help to alleviate cost barriers to primary care.
“A re-elected Albanese Labor Government will make the single largest investment in Medicare since its creation over 40 years ago, with $8.5 billion to deliver an additional 18 million bulk billed GP visits each year, hundreds of nursing scholarships and thousands more doctors in the largest GP training program ever,” Butler said in a recent media release.
Despite these pledges, Minister Butler acknowledges the ongoing challenges, stressing that there’s still so much work to do, and “Australians rightly deserve a world-class health system”.
Keeping our place as a global leader
Sustaining Australia’s top position will rely on an ongoing commitment and targeted improvements. The Australian government needs to keep prioritising funding for Medicare, addressing out-of-pocket cost burdens, expanding rural healthcare infrastructure and improving the coordination of patient care.
Investments in preventive healthcare, chronic disease management programs, digital health technologies and more will also be critical if we want to maintain our position as the world’s leading public healthcare system.
Summary
Medicare being ranked as the best-performing health system worldwide is a remarkable achievement that’s well worth celebrating. But we can’t now sit idly by as the rest of the world catches up.
As Australians, we need to advocate for more improvements to make sure Medicare stays as responsive and inclusive as possible. A world-leading healthcare system is within reach, so long as we continue to push for policies that will deliver universal and equitable healthcare for all.
If you want to find a quality policy for you or your family, the Fair Health Care Alliance can help by comparing health insurance today.
FAQ's
Australia excelled in health outcomes, equity and administrative efficiency, according to the Commonwealth Fund.
Affordability, timely access to care, rural healthcare accessibility and coordination between healthcare providers.
The government has increased funding for bulk billing, invested in preventive care initiatives and committed to improving healthcare infrastructure.
While it’s true that Medicare covers many essential health services, there are still plenty of gaps thanks to specialists charging above the Medicare rebate, limited bulk-billing availability and high co-payments for various medical procedures and tests.
