Specialists will be obliged to post their fees on the Medical Costs Finder website, and product phoenixing will be outlawed by the new bill introduced today.
The federal government is moving to pull back the curtain on non-GP specialist fees, introducing legislation today that would require more detailed medical billing data to be made public.
The Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026 would force more detailed billing data out into the open, using information the government already collects from Medicare, hospitals and private insurers.
The data would be published on Medical Costs Finder website, a $24 million Morrison government project that was launched in 2019.
The original goal of the website was to display the cost of common medical services and the fees specialists volunteered.
However, that’s not how it worked out.
At the end of 2022, only six doctors had chosen to display their fee information. Three years later, that had only increased to 88 doctors.
Federal health minister Mark Butler said specialists and private health funds were given the opportunity to be upfront about patient costs and out-of-pocket expenses but had failed to do so.
“We know an increasing number of Australians are not taking up referrals from their GP to see a specialist due to concern about cost, but this legislation will give hard-working Australians the clarity they deserve about costs and more choice in their health care,” he said.
Also included in the legislation will be the outlawing of the practice known as “product phoenixing”, where private health insurers close a product and reintroduce the same one at a higher price.
“This Bill legislates wider scrutiny of premiums so consumers can be more confident in the value of private health insurance,” Mr Butler said.
AMA Queensland said it supported transparency for patients, but flagged that this legislation wasn’t telling the full story.
According to president Dr Nick Yim, the government has refused to increase Medicare rebates in line with rising costs and instead of accepting its role, was blaming frontline medical specialists.
“Our members are frankly shocked by the government’s blame-game approach,” he said.
He said part of the problem was the ballooning private health insurance premiums, which the government had failed to stop.
“Despite record insurer profits, these companies are delivering fewer benefits to patients every year,” he said.
“This means people are lowering their cover, or dropping it altogether, and facing higher out-of-pocket costs down the track.
“We’re pleased the government is finally going to address the ‘phoenixing’ of policies by private health insurers, but Australia needs an independent private health authority to fix the problems plaguing the private system and flowing into our public hospitals.”
Dr Yim said while doctors should set fair fees, they shouldn’t be the scapegoats for poor planning.
“There is a global shortage of doctors and other health professionals, and the government urgently needs to increase the number of medical students and trainees to build our future workforce,” he said.
“But it needs to consider that its current attack on doctors may discourage bright young people from pursuing careers in medicine.
“Instead of deflecting blame, the government should fix its own failures and properly fund the health care Australians need and deserve.”
Insurance peak body Private Healthcare Australia backed the MCF legislation, saying it was a critical step toward tackling Australia’s growing specialist fee crisis.
PHA CEO Dr Rachel David said Australians were often in the dark about fees or didn’t go to specialist appointments at all because they were worried about the cost.
“Greater visibility of specialist fees will help patients compare options, avoid bill shock and make informed choices about their healthcare,” she said.
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A PHA survey of 4000 Australians found one in two patients didn’t know their fees before attending the appointment and 38% received an unexpected bill.
PHA’s director of policy and research, Ben Harris, highlighted on 2GB earlier this week that 29% of patients report being charged illegal “booking” or “admin” fees.
“We’re seeing in some areas patients being asked to pay, say, $50 administration fee.
“So Medicare never sees it. You pay your medical fee, you get your Medicare rebate, but the doctor or the practice has pocketed an extra 50 bucks, and that is not legal,” he said.
