Bulk Billing
Summary
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Treasury analysis from February 2025 assessed the consumer price index impact of bulk billing rebate changes. The Department of Health estimated the proposals would cost government $2.4 billion annually, reducing patient out-of-pocket costs by $800 million ($350 million from increased bulk billing incentives and $450 million from GP clinics), with service providers capturing the remainder. Treasury noted that while reduced out-of-pocket costs would lower growth in the medical and hospital services CPI class, GP services represent only 5% of that expenditure class, which itself weighs 4.7% of the CPI basket, limiting the headline CPI contribution to less than 0.3%.
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