Australians struggling to afford healthcare

13 July 2022

Australians are struggling to access and afford essential healthcare, according to the latest Australian Healthcare Index from the Australian Patients Association and Healthengine.

Australian’s top three issues facing Australian healthcare were:

  • the cost of private health insurance (45 per cent)
  • emergency department waiting room times (40 per cent) and
  • access to mental healthcare (39 per cent)

Another key concern for respondents is the wait time for elective surgery exceeding the recommended treatment time. A total of 56 per cent of people needing surgery within 30 days (Category 1) are forced to wait 31 days or more, and 15 per cent have been waiting over a year. And 61 per cent of people needing surgery within 90 days (Category 2), have been waiting beyond the recommended time, and 26 per cent have been waiting more than a year.

The Chief Executive Officer of the Australian Patients Association, Stephen Mason said: “As the economy struggles, it is more important than ever to ensure that Australians can access and afford the health services they need. From delays in mental healthcare to elective surgery, access to timely care is in a holding pattern.”

Commenting on the findings, Dr Zena Burgess, Chief Executive Officer of the Australian Psychological Society and Patron of APA said more needed to be done to improve access and affordability of mental healthcare.

“Reducing wait times is essential, but Australians also want value for money for their private health insurance to be able to access high-quality psychological care. It’s little wonder demand for mental health services is rising: Australians are suffering from crisis fatigue as they deal with natural disasters, the pandemic and global uncertainty. All the while the cost of living continues to rise.”

2022 research from the Australian Psychological Society found that since the pandemic began, 88 per cent of psychologists have seen an increase in demand for services. One in 3 psychologists are unable to see new clients, prior to the pandemic only 1 in 100 could not take on new clients.1

Chief Executive Officer and founder of Healthengine Dr Marcus Tan finds that Australia’s healthcare rating is dropping.

“People who completed the survey rated Australian healthcare a 7.2 out of 10, dropping from 7.8 in March 2021 to 7.6 in Oct 2021. The overall trend is heading in the wrong direction suggesting that the Australian healthcare system is under stress, likely leading to worse experiences and outcomes. We view this as a concerning leading indicator that an impending and significant health crisis is on our hands,” Dr Tan said.

Other key issues raised by respondents

Access to mental health

The Australian Healthcare Index found that 24 per cent of people surveyed said their mental health has declined over the past six months, and of those 40 per cent identified COVID-19 as contributing. In the past six months, 26 per cent of respondents sought mental health support and of those, 18 per cent have not yet received support. A total of 59 per cent of those who have not yet received support have been waiting for over three months to access the care they need. States with the most people waiting over there months for mental healthcare include SA (67 per cent), NSW (59 per cent), Queensland (59 per cent), and Victoria (59 per cent).

GP costs

A total of 48 per cent say they would move to another bulk billing GP if their current GP introduced an out-of-pocket cost for a standard appointment. Only 16 per cent said they’d stay with their GP regardless of any new out-of-pocket costs. As people age, stats show they are less likely to change to a new GP. Younger people would be most likely to change GPs, as only 38 per cent of those aged 65 or over saying they’d switch GPs if an out-of-pocket cost was introduced, while 56 per cent of 18-34-year-olds would make the change to a new GP.

Dental out-of-pocket costs

A total of 38 per cent of people said they do not have a regular dentist/clinic. Of those, 26 per cent said they don’t have a regular dentist because they don’t want to pay out-of-pocket costs.

Private health insurance faces consumer critique

While 36 per cent of people participating in the Australian Healthcare Index survey said they don’t have private health insurance, the other 64 per cent who do are not all fans. Of those who do have private health insurance, 37 per cent aren’t satisfied and reasons cited include poor value for money, price of insurance is not affordable, and that private health insurance extra coverage is lacking. According to the Department of Health, people find private health insurance complex, struggle to understand what is covered under different policies, and don’t fully understand what they are getting for their money.2

Cost of prescription medication versus the cost of living

When asked if prescription medicines are affordable to them, 24 per cent of respondents disagreed, which suggests people may have to choose between medication and other essentials.

Telehealth inflexibility

The criteria requiring a patient to have had a face-to-face consult with the same GP or another practitioner at the same practice within 12 months to access the Medicare rebate for general telehealth appears to be a barrier that disproportionately affects younger people. Overall, 14 per cent of people said this has prevented them from accessing telehealth to get timely and affordable care, whilst 22 per cent of people aged 18-34 faced this barrier.


Page last updated on: 13 July 2022