Medicare Safety Net Reform

Overview

Medicare Safety Nets serve an important role in protecting health care consumers from the impact of high out-of-pocket costs. The safety nets do not apply to services that are not listed on the Medicare Benefits Schedule (MBS) or to MBS services that are delivered in hospital.

Once your out-of-pocket medical costs reach a certain amount, Medicare gives you a higher amount back for the rest of the year. Anyone enrolled in Medicare is eligible for these safety nets.

In 2023, over 1 million Australians received additional benefits through Medicare Safety Nets. For many Australians with complex or high health care needs, safety net arrangements help ensure health care services remain affordable and accessible.  

While current safety net arrangements work well for many, the MBS Review Taskforce’s final report identified a range of issues to be addressed in relation to consumer out-of-pocket costs and the operation of the safety nets. The Taskforce recommended the establishment of a Working Group with the medical profession and consumers to review current safety net arrangements and advise on opportunities for reform of the system.

In response to these recommendations, in July 2024 the Medicare Safety Net Reform Working Group (MSNWG) was established by the Department of Health and Aged Care to review current Medicare Safety Net arrangements and provide advice on possible reform options for consideration by Government. Membership of the MSNWG comprises health economic and systems experts, consumer representatives and medical provider representatives.

Why your views matter

The Department is seeking feedback via a Consultation Paper from consumers, health practitioners and other interested parties about their experiences with current Medicare Safety Net arrangements to inform the deliberations of the MSNWG. While the Government also provides support to consumers with the costs of their health care through a number of other programs including the Pharmaceutical Benefits Scheme Safety Net and Private Health Insurance Rebate these programs are out of scope for this consultation process.

You are invited to respond to the consultation questions in the Consultation Paper by completing an online survey. Alternatively, you can use the online survey form to upload a written submission. Survey responses will be accepted until 5:00pm AEDT on 15 November 2024.

Submissions and survey responses will not be published by the Department.

Click on the link below to access the online survey.