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How does the Australian Health System work?

Reviewed and updated 3 April 2024

What are the objectives of the Australian Health System?

The Australian Health System’s objective is to provide health services for Australians that are:

  • accessible
  • appropriate
  • safe
  • affordable.

How does it do this?

The Australian Health System is a hybrid system, which means it is a mixture of a public and private system.

The public system is the universal public health insurance scheme – Medicare.

The private system is the voluntary private health insurance system, which is designed to complement Medicare.

Medicare

Under Medicare, you can:

  • go to a public hospital (treatment by a doctor appointed by the hospital)
  • visit a General Practitioner (GP) or medical specialist
  • get some tests and scans
  • get some prescription medicines
  • have your eyes tested by an optometrist.

Private Health Insurance

The private health insurance system gives you choice outside the public system. 

There are 3 types of cover:

  1. Hospital Cover: covers some or all of the cost of being treated as a private patient in hospital.
  2. Extras Cover: covers some of the services not covered by Medicare such as visits to the dentist and allied health professionals (for example, chiropractor, optometrist and physiotherapist).
  3. Ambulance Cover: covers ambulance services.

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