Medicare is Australia’s universal healthcare system, designed to provide residents with affordable access to a wide range of medical services. It plays a vital role in helping Australians receive essential healthcare without facing prohibitive costs. In 2025, Medicare continues to evolve, expanding coverage and improving affordability. This blog post explains what Medicare is used for in Australia, the services it covers, and recent updates to help you make the most of your healthcare benefits.
What Is Medicare?
Medicare is a government-funded health insurance program that subsidises many medical services for Australian citizens, permanent residents, and some eligible visitors. It ensures that people can access necessary healthcare, including doctor visits, hospital treatment, and prescription medicines, often at low or no direct cost.
Key Uses of Medicare in Australia
Medicare helps cover the costs of a broad range of healthcare services, including:
- Visiting General Practitioners (GPs) and Specialists: Medicare subsidises consultations, making it affordable to see your doctor or a specialist for diagnosis and treatment.
- Diagnostic Tests and Scans: Services such as blood tests, X-rays, MRIs, and ultrasounds are covered, helping with accurate diagnosis and monitoring of health conditions.
- Hospital Treatment: Medicare covers treatment as a public patient in government hospitals, including surgeries and inpatient care, at no direct cost.
- Mental Health Services: Access to mental health assessments and therapy sessions is supported under Medicare, helping Australians receive psychological care.
- Pregnancy and Maternal Care: Medicare assists with prenatal visits, tests, and hospital deliveries to support maternal and child health.
- Minor Surgeries and Procedures: Some outpatient surgeries and procedures performed by doctors are subsidised.
- Rehabilitation and Allied Health Services: Services like physiotherapy, occupational therapy, and other allied health treatments are covered when referred by a GP.
- Prescription Medicines: Through the Pharmaceutical Benefits Scheme (PBS), Medicare subsidises many essential medications, reducing the cost at pharmacies.
What Medicare Does Not Cover
While Medicare covers many essential services, there are some areas it does not subsidise, including:
- Ambulance services (coverage varies by state)
- Most dental treatments (except certain children’s and eligible adult services)
- Glasses, contact lenses, and hearing aids
- Cosmetic surgery
- Alternative therapies such as acupuncture or chiropractic care (unless under specific programs)
For these services, private health insurance or out-of-pocket payments are usually required.
Recent Medicare Enhancements in 2025
The Australian Government has introduced several improvements to Medicare in 2025 to enhance access and affordability:
- Increased Bulk Billing Incentives: With $8.5 billion allocated, the government aims to make 90% of GP visits bulk billed (free to patients) by 2030, reducing out-of-pocket expenses.
- Lower Prescription Costs: From January 2026, the maximum cost of PBS-listed medicines will reduce from $31.60 to $25, making medications more affordable.
- Expanded Urgent Care Clinics: More Medicare Urgent Care Clinics are being established to provide free urgent health services and reduce pressure on hospital emergency departments.
- Enhanced Mental Health and Chronic Disease Support: Medicare now covers more sessions and services related to mental health and chronic condition management.
How to Access Medicare Services
To use Medicare, you need to enrol and obtain a Medicare card. Present your card when visiting healthcare providers or pharmacies to receive the government rebate or bulk billing benefits. Many services require a referral from a GP to be covered.
Why Medicare Matters
Medicare ensures that all Australians have equitable access to essential healthcare, regardless of income or location. It reduces financial barriers, promotes early diagnosis and treatment, and supports overall public health.
Medicare is used across Australia to provide affordable access to a wide variety of healthcare services-from doctor visits and hospital care to diagnostic tests and prescription medicines. With ongoing reforms in 2025, Medicare continues to strengthen its role in supporting Australians’ health and wellbeing. Staying informed about what Medicare covers helps you navigate the healthcare system confidently and make the most of your entitlements.