Health · Healthcare & Policy · 6 hrs ago
More than 2.2 million Australians paid extreme specialist fees in 2025
A Grattan Institute analysis found more than 2.2 million Australians paid extreme specialist fees in 2025.
The institute defines an extreme fee as at least three times the government’s Medicare schedule fee, a benchmark used to set rebates.
The highest-cost psychiatrists charged a median out-of-pocket fee of $669 for an initial visit, while high-cost paediatricians charged $362.
Specialist fees rose 4% faster than inflation in 2025, and the report says more than 800,000 people skip or delay specialist care each year because of cost.
The Australian Medical Association says government rebates have not kept pace with the costs of providing care, while the institute argues those factors do not explain the highest fees.
The institute wants the government to reclaim rebates from the highest-charging specialists, while patients would keep their own rebates.
The government plans to publish specialist fees online from 2027, but the institute says greater transparency alone will not fix the problem.
More than 2.2 million Australians paid an extreme fee to see a specialist in 2025, according to a Grattan Institute report.
The report defines an extreme fee as at least three times the government’s Medicare schedule fee.
It found specialist fees rose an average of 4 per cent above inflation in 2025.
The institute called for specialists whose annual fees average more than three times the schedule fee to repay their Medicare rebates.
The Australian Medical Association has argued that government underfunding and slow rebate indexation contribute to affordability and access problems.
- Who
- More than 2.2 million Australians paid extreme specialist fees. The Grattan Institute produced the report.
- What
- A report found extreme fees were widespread and called for specialists with very high average fees to repay Medicare rebates.
- When
- In 2025. The report was published in November 2026.
- Where
- Australia.
- Why
- The report says specialist fees rose faster than inflation and that the market does little to restrain them. The AMA says government underfunding and slow rebate indexation contribute to the problem.
Grattan Institute
Australian Medical Association
Causes of high fees
Grattan Institute
Specialists have more than recouped Medicare losses, and rising business costs do not explain the highest fees.
Australian Medical Association
Government underfunding and slow indexation of Medicare rebates have contributed to affordability and access problems.
How to address the issue
Grattan Institute
Specialists whose annual fees average more than three times the Medicare schedule fee should repay the government for rebates claimed that year.
Australian Medical Association
The available sources describe the AMA’s explanation of the problem but do not state a specific alternative proposal.
Specialist fees rose 73 per cent, according to earlier research cited by the Grattan Institute.
Health Minister Mark Butler launched an inquiry into specialist affordability and accessibility.
Legislation passed allowing the government to publish specialist fees on the Medical Costs Finder website.
More than 2.2 million patients paid extreme specialist fees, according to the Grattan Institute report.
The publication of specialist fees on the Medical Costs Finder website is due to begin.
- Patients affected
- More than 2.2 million in 2025
- Definition
- An extreme fee is at least three times the Medicare schedule fee
- Fee growth
- Specialist fees rose 4 per cent above inflation in 2025
- High-cost psychiatrists
- Median out-of-pocket fee of $669 for an initial consultation
- Proposed repayment threshold
- Annual fees averaging more than three times the Medicare schedule fee
2 sources
What people are saying
This policy failure is hurting patients and exacerbating the cost-of-living crisis
That kind of approach isn’t working.
The growing shortfall must be absorbed by medical practices or passed on to patients