How Australia affords free healthcare, which is not fully free but universal Medicare providing free public hospital and subsidised GP, is through taxation, efficient system and mixed public-private model. Australia funds Medicare via 2% Medicare levy on taxable income for most taxpayers earning over $24,276, plus additional 1% to 1.5% Medicare Levy Surcharge for high income earners over $97K single who do not have private hospital cover, raising about $20B per year. General taxation from income tax, GST and other revenue funds rest, with federal government spending about $100B per year on health, 10% of GDP versus US 18%. Australia affords it by having efficient primary care gatekeeper system where GP refers to specialist, reducing unnecessary specialist use, and Pharmaceutical Benefits Scheme PBS negotiating drug prices down 50% to 80% versus US prices, saving billions. Public hospitals are run by states with activity-based funding, private hospitals handle 40% of elective surgery, reducing public wait. Private health insurance rebate 24% to 33% encourages 45% of Australians to have private cover, taking pressure off public system. Also, Australia has lower administrative costs 5% versus US 8% due to single payer Medicare. Preventive care and high vaccination reduces costly hospitalisations. So Australia affords free healthcare via 2% levy, general tax, efficient negotiation, mixed public-private and lower admin, spending 10% GDP to cover everyone versus US 18% for partial coverage.
1 votes
Marked as accepted