Albanese pledges $2.2 billion for Medicare overhaul

Prime Minister Anthony Albanese has promised $2.2 billion to launch the biggest overhaul of Medicare in its 40-year history while pledging to clamp down on ballooning costs in the National Disability Insurance Scheme.

Pharmacists and nurses will play a greater role in the health system, while new funding models will shift away from the traditional fee-for-service scheme that has driven how GPs are paid since the universal healthcare scheme began.

There will also be a new Medicare patient ID for Australians so they can register with their local doctor and the government can better understand the conditions that are driving people to emergency departments.

Albanese said state and territory leaders had confirmed health would be their “front and centre” concern for the rest of the year during the final national cabinet meeting before the May 9 federal budget, held in Brisbane on Friday.

Their commitments come as state hospital systems struggle under surging demand, GP bulk-billing rates decline every quarter and out-of-pocket fees rise, threatening the affordability of Australia’s universal health system.

Albanese said state and federal governments had also agreed to curb spending on the NDIS – now the government’s second-fastest growing budget pressure. The NDIS, currently growing in cost at between 12 and 14 per cent a year as more people join, will have an 8 per cent annual growth target.

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“We need to have a sustainable growth trajectory for the NDIS in order to support equity and fairness for all Australians who are living with disability, including those not eligible for the NDIS, and ensure that every dollar goes to those who need it most,” he said.

“There are obvious issues with the way that the scheme is being administered. That’s why we’re providing substantial funding.”