FROM MEDIBANK TO MEDICARE: TRENDS IN AUSTRALIAN MEDICAL CARE COSTS AND USE FROM 1976 TO 1986

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Abstract
Private medical care costs and service use in Australia from 1976 to 1986 are compared. In each of these years Australia had a compulsory, universal, fee-for-service, national health insurance scheme - Medibank in 1976 and Medicare in 1986. Over the period of 1976 to 1986, the number of private medical services per capita, in the 6 month period 1 April to 30 September, increased from 2.79 to 3.95, an increase of 3.54 per cent per year. The cost of services per capita, adjusted for increases in schedule fees for each item-group of services (the 'fee-adjusted cost'), grew at a rate of 3.91 per cent per year. The results are reported by subsets of age, sex and item-group of service. It is found that very little of the large increases in use and cost of services can be attributed to demographic changes or population growth. Rather, they represent rapid increases in age and sex-specific rates of use, primarily among the very young, the very old and, for some types of service, women of child-bearing age. The most dramatic increases in service use are found in pathology, radiotherapy and miscellaneous procedures.

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