Medicare rebate rise falls short of rising healthcare costs, GPs say
29 May 2026
The new indexation rate will apply to most general medical services, diagnostic imaging items and selected pathology services under the MBS.
The announcement comes as inflation and healthcare operating costs continue to rise. Recent figures show consumer prices increased by 4.2% over the past year, while health-related costs rose by 4%. Private health insurance premiums have also increased by an average of 4.41%.
The Royal Australian College of General Practitioners says the increase is welcome but remains below the actual cost pressures faced by general practices.
RACGP President Dr Michael Wright said many clinics are struggling with rising expenses, including staffing, technology, insurance and compliance requirements, making it difficult to rely on government funding alone to remain financially sustainable.
The announcement has also reignited concerns about the future of bulk billing, with GPs warning that lower-than-expected indexation may place additional pressure on practices already facing tight margins.
At the same time, doctors continue to raise concerns about upcoming Medicare assignment of benefit changes, which will introduce new consent and record-keeping requirements for bulk-billed services from 1 July.
The RACGP has continued to advocate for the creation of an independent authority to determine Medicare rebate levels based on the real cost of delivering patient care.
The 2.6% indexation increase will take effect on 1 July 2026 and apply to most eligible MBS general medical, diagnostic imaging and selected pathology services.
Medicare rebate rise falls short of rising healthcare costs, GPs say
Source: newsGP