Australian Health Care Policy

This report discusses the Australian health care policy, Medicare, which provides free health care benefits to the Australian public. It explores the history, reasons behind its implementation, and the impacts on Australian society.

Running Head: SOCIOLOGY 0
Australian Health Care Policy
Student Name

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Executive Summary
The Social policies are the policies implemented by the government, which relates to
social services and welfare state. These policies implemented as per the requirement of the
public. Due to the global challenges, environmental changes, economic changes, migrations
and globalisation, it becomes necessary for the government to take necessary steps by
generating social policies for the social benefits. This report contains the discussion on one
of the Australian social policy that is Australian health care policy, ‘Medicare’.
Since 1984, Medicare provides free health care benefits to the Australian public in the
areas such as speech pathology, physiotherapy, dentist and dieticians. For more details, read
the following paragraphs.

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Contents
Introduction....................................................................................................................3
Social Policy...............................................................................................................3
Australian Social policies...........................................................................................3
Australian Health Care Policy........................................................................................3
Medicare.....................................................................................................................4
History of Medicare...................................................................................................4
Reasons behind Medicare..........................................................................................5
Free Public Health Care.........................................................................................5
Subsidies provided by Private Health Care............................................................5
Reduce the Cost of Medicine.................................................................................5
Australian Health Insurance Premium...................................................................6
Impacts and Effects of change within Australian Society.........................................6
Conclusion..................................................................................................................7
Bibliography...................................................................................................................8

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Introduction
Social Policy
The Social policies are the combinations of various principles, activities and
guidelines, which are in the favour of society. Poverty reduction, justice, health care, social
rights, family policy, child protection, housing, pension, crime and justice, security,
wellbeing and welfare are the areas in which government generates social policies to serve
human welfare (What is Social Policy?, 2019).
Australian Social policies
Australia is the country having culture, climate, geography, population, and history in
a unique and diverse manner. To maintain this uniqueness, it is important to fulfil the needs
of society for education, work, health, security and wellbeing. Australian government
imposed some necessary social policies. Some of the social policies are public housing
policy, health care policy, unemployment welfare and neoliberal policy (Kerr & Carson,
2017). This report explains the ‘Australian Health Care Policy,’ of the Australian
Government.
Australian Health Care Policy
The Australian Government takes the initiative under health care policy and that
social policy follows the universal health care system named as ‘Medicare’ (Dixit &
Sambasivan, 2018). It is one of the best health systems in the world. Under this scheme, the
Australian Government provides funds for primary health care to the permanent residents,
citizens and refugees in Australia. Health care and financial protection provide to all
residents of Australia in this universal health insurance scheme, which help in improving the

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health services. In addition, Australia government provides financial risk protection in
medical sector.
Medicare
In Medicare System, the government provides funding and responsibility to federal
and state government and this makes complex in nature. Still, Australia has a beneficial
universal health system (Galan, 2018). This system provides various benefits to the society in
monetary terms as pubic do not have to pay the doctors and specialist consultation fees, tests
prescribed by a doctor is free of cost and most of the surgery procedure do not involve health
care cost. The Australian Government is a federal government, which shares responsibility of
the health system, specified below.
a) The Australian government is responsible for leading the ‘National Health
Policy’. This policy fall under the Act named as ‘National Heath Act’. In 1953,
the government regulated this act, which provides the provisions for sickness,
dental, pharmaceutical, miscellaneous hospital benefits and disease care services.
b) The State and territory Government is responsible for providing funds to states
and territories for public hospital services and manage them. Only government has
the authority to regulate and provide license to private hospitals. In addition, they
provide services such as cancer screening, immunization programs and
ambulance.
c) The local Government is responsible for the healthy activities related to
environment such as water fluoridation, health promotions, water disposal and
home based health services.

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History of Medicare
In 1975, Whitlam Government introduced the program named as ‘Medibank’ (Harris,
2012). In the program Australian got the most efficient and equitable means of health
insurance coverage, but after the change of government in 1976, the new program was
launched named as, ‘Medimark II’. This program is not in the favour of the public. It include
some percentage of levies on taxable income. In addition, as this program is not in the favour
of public interest. Therefore, Hawke reintroduced this program in 1984 and renamed it as
‘Medicare’. Later on, Hawke includes some acts in ‘Medicare’. The names of the acts were
Nation Health Act 1953, Health Insurance Act 1973, Health Insurance Commission Act 1973
and Health Legislation Amendment Act 1973.
Reasons behind Medicare
Free Public Health Care
Medicare covers 100% cost of the doctors’ treatment in public hospitals in Australia.
This includes the entire test prescribed by the specialist. This is one the most important
reason government enacts this program as it give financial protection to public regarding
health sector.
Subsidies provided by Private Health Care
If an individual does not want the treatment from the public hospital, but still wants to
avail Medicare advantage, an individual can do so in private hospitals also. Some percentage
of the bill will be subsidies by the government, under this program. This is the reason
government implement it. As it helps the public in availing, health care facilities with low
cost not only in public hospitals but in private hospitals also.

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Reduce the Cost of Medicine
Under this program, there is the scheme named as Pharmaceutical Benefits Scheme,
which help the public to buy the medicine at lower prizes. To avail the benefits of this
Scheme, individuals should always have own Medicare Card.
Australian Health Insurance Premium
Another reason of Medicare preferable by the Australian Government as it provides
the rebate on the bills private health care (Zuckerman, Skopec, & Guterman, 2017). The
Australian avails the health insurance from the registered Australian insurer. If the individual
qualifies in availing this insurance, he or she will get the reimbursement on the bill.
Impacts and Effects of change within Australian Society
There is a huge change in Australia after the implementation of Medicare. The impact
and effect of Medicare within Australian society, reduces the cost of health care by providing
private health insurance (Sowa, et al., 2018). Some of the impacts and effects of Medicare,
which has changed the Australian society, are as follows:
i. After the implementation of Medicare, hospitals and doctors probably faces pay
cut from the public, but get the bill fully paid by them (Hardie & Critchley, 2008).
ii. Due to Medicare, Australian is one of the country having lowest smoking rates. In
addition, drug companies having smaller profits comparatively.
iii. The number of Private Health Insurance (Glover, 2019)companies is declining
day by day as Medicare already providing rebates to the public under the
Australian Health Insurance Premium.

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iv. The people who avail the Medicaid have to pay the higher taxes to get more
choices of doctors and hospitals, but after Medicare, now they have to pay the
lesser amount and still they get more choices.
v. Medicare is universal, so the uninsured people will also avail the benefits of
Medicare (Williams, 2009).
vi. In 2009, Labor government introduced the program under Medicare named as
‘Bulk Billing’ in which the practitioners charged their bills directly to the
‘Department of Human Services’. Practitioners have both the choices either to
charge bulk bill or private bill to the patient (P.Dempsey, 2009).
Conclusion
According to the above report, it can be concluded, that every Country has its own
healthcare system. Medicare is one the most effective health care policy in Australia.
Australian public pays as the Medicare levy to the government, so the government does free
expenditure on health care. It subsidizes the medical cost, which help all the communities of
Australian Society. The Medicare implementation helped the Australian government in
increasing the medical Standards. Although, Medicare some negative aspects also but all over
it is a beneficiary plan for the Australians.

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Bibliography
What is Social Policy? (2019). Retrieved from University of York:
https://www.york.ac.uk/spsw/about/what-is-social-policy/
Dixit, S. K., & Sambasivan, M. (2018). A review of the Australian healthcare system: A
policy perspective. SAGE Journal, 6. doi:doi.org/10.1177/2050312118769211
Galan, N. (2018, 12 30). What are Medicare and Medicaid? Retrieved from Medical News
Today: https://www.medicalnewstoday.com/articles/323858.php
Glover, L. (2019). The Australian Health Care System. Retrieved from International Health
Care System Profiles: https://international.commonwealthfund.org/countries/australia/
Hardie, E. A., & Critchley, C. R. (2008). Public perceptions of Australia’s doctors, hospitals
and health care systems. The Medical Journal of Australia, 189(4), 210-214.
Harris, M. F. (2012). Who gets the care in Medicare? The Medical Jounal of Australia,
197(11), 598-599. doi:doi: 10.5694/mja12.11532
Kerr, L., & Carson, E. (2017). Australian Social Policy in Practice. In L. Kerr, & E. Carson,
University of South Australia (pp. 169-170). Cambridge: Cambridge University Press.
P.Dempsey, M. S. (2009). General practitioners' perceptions of psychologists: A response to
the Medicare changes in Australia. Australian Psychologist, 44(4), 279-290.
doi:10.1080/00050060903080110
Sowa, P. M., Kault, S., Byrnes, J., Ng, S.-K., Comans, T., & Scuffham, P. A. (2018). Private
Health Insurance Incentives in Australia: In Search of Cost-Effective Adjustments.

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Applied Health Economics and Health Policy, 16(1), 31-41. doi:10.1007/s40258-017-
0338-6
Williams, R. F. (2009). Private psychiatry and Medicare: Regional equality of access in
Australia? Journal of Mental Health, 18(3), 242-252.
doi:https://doi.org/10.1080/09638230802053375
Zuckerman, S., Skopec, L., & Guterman, S. (2017, 12 21). Do Medicare Advantage Plans
Minimize Costs? Investigating the Relationship Between Benchmarks, Costs, and
Rebates. Retrieved from The Commanwealth Fund :
https://www.commonwealthfund.org/publications/issue-briefs/2017/dec/do-medicare-
advantage-plans-minimize-costs-investigating