Medibank Summary Sheet 673370

Medibank: Effect on Australia/ns 

Before the establishment of Medibank healthcare was existent, it did not cater for the whole of the public as it was voluntary. The state government had been providing much financial to their public hospitals prior to 1946. All state governments except for Queensland after 1946 did not have complete control over their public hospitals, and therefore free hospital services. Healthcare services were existent through government and nonprofit organisations but were voluntary and was continuously reported deficient and unsatisfactory.

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After the establishment of Medibank under Whitlam Government in 1975, the whole ranges of Australian citizens were covered by health insurance, funded by government taxation. The whole of Australia had services from hospitals and other out-of hospital services such as professional consultations from doctors and specialists provided free, creating a huge change in Australia health care standards as well as the first national health insurance.

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At the end of Labour Government to Liberal, Medibank was turned into a private health insurance system after 1976, Medibank Private. This limited free hospital and medical services to disadvantage peoples, such as pensioners. Private healthcare was further encouraged through the government offering 32% income tax rebate for .

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From late 1984, through Hawke Labor government Medibank was reintroduced and under different financial arrangements, Medibank was renamed into Medicare, re-allowing free health services in or out of hospital to patients.

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Eventually, after the bringing of Medibank Private, Medibank was changed into Medicare, the public health insurance system and in 1983, a levy of 1.5% taxable income was made, as it is currently. This was described as ‘a major social reform’ that would ‘embody a health insurance system that was simple, fair and affordable.’ (Dr. Blewett, Second Reading Speech, Sept. 1983).

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