Medicare might be "universal", but it doesn't cover everything. Slide to adjust out-of-pocket costs and watch the coverage gap emerge. This split-funding model defines Australian healthcare equity and access.
Drag to adjust Medicare rebate percentage
Medicare provides universal access to medical services — GP visits, specialist consultations, diagnostic tests, and public hospital treatment — funded by a 2% Medicare levy on taxable income plus general taxation revenue. The system is built on bulk billing (where doctors accept the Medicare rebate as full payment) but many services charge gap fees, creating out-of-pocket costs that can exceed hundreds of dollars for specialist care. Medicare doesn't cover private hospital accommodation, dental (except some public services), optometry, physiotherapy, or ambulance services in most states. This coverage boundary means Australians pay twice: once through compulsory taxation, again directly for services outside the safety net. The gap between what Medicare rebates and what providers charge is where equity issues emerge — higher-income patients can afford specialists who charge large gaps, while lower-income patients may delay care or stick to bulk-billing clinics with longer wait times.
Medicare guarantees universal access to medical services funded by the Medicare levy and general taxation, while the PBS subsidises the cost of medicines, both systems designed to promote access and equity despite significant coverage gaps.