Summary
The Health Insurance (General Medical Services Table) Regulations 2010 establish the Medicare Benefits Schedule (MBS) General Medical Services Table, which specifies approximately 5,800 medical service items, their descriptions, fees, and Medicare rebate amounts. This regulatory instrument determines what medical services are eligible for Medicare benefits, sets the scheduled fees for each item, and governs how doctors and other health practitioners can bill for services under Australia's universal healthcare system. It forms the backbone of the Medicare fee-for-service model, determining rebates for consultations, procedures, diagnostic services, and specialist attendances across all medical disciplines.
Reason
This regulation implements price controls across 5,800+ medical service items, distorting healthcare markets by artificially suppressing fees below market rates. This creates systematic undersupply of medical services, particularly in rural areas where Medicare rebates rarely cover cost-of-delivery. The scheduled fee system creates a two-tiered system where patients either accept bulk-billed services (at scheduled rates) or pay gap fees for their chosen doctor. By restricting what doctors can charge, it reduces competition, distorts career incentives toward overserviced specialties, and prevents innovative delivery models that could deliver better value. The resulting 'Medicare gap' problem demonstrates that price controls fail to achieve affordable healthcare—they merely shift costs and create waiting lists. As Friedman recognized, price controls ultimately reduce the quality and quantity of goods available, and nowhere is this more consequential than in healthcare.