When direct subsidies and indirect costs are taken into account, private health insurance rebates cost the taxpayer more than $12 billion a year, yet there is little evidence to prove they achieve their primary goal of taking pressure off the public health system.
The national day of empty platitudes is upon us once again: R U OK? Day. And it’s apparently important, because as the media keeps reminding us, mental health issues are at epidemic levels. Interesting, then, that so very little has changed about how we manage people’s brains. Like, at all.
Australia’s usual model of general practice relies heavily on private businesses earning revenue for each service they provide. That can work reasonably well where there are lots of patients and doctors (i.e. cities). It works less reliably in a town of a few thousand people, where maintaining a viable practice can depend on rents, accommodation, hospital arrangements and whether somebody can cobble together funding from three levels of government.
Soaring specialist costs, an increasingly complex system, and Australians getting sicker for longer suggest all is not well in Australian health care.
On this episode of Follow the Money, Dr Luke Slawomirski and Matt Grudnoff join Ebony Bennett to discuss the soaring cost of specialists, why pushing people towards the private health system doesn’t take pressure off public hospitals, the government’s proposed changes to private health rebates, and how to ensure Australia doesn’t backslide towards US-style health care.
This episode was recorded on Tuesday 15 September.
Correction: During the discussion on Australian specialist costs, Luke mistakenly said that average costs in the Australian Capital Territory are six times higher than Tasmania. They are actually four times higher.
More Fool Me: How the gas industry tricked Australia by Richard Denniss, the latest edition in the Vantage Point series, is available now.
Use the code ‘FOOLME’ on a four-edition Vantage Point subscription to receive a free copy of Richard’s book, Econobabble.
Guest: Luke Slawomirski, Senior Postdoctoral Research Fellow, the Australia Institute // @lukeslawomirski
Guest: Matt Grudnoff, Senior Economist, the Australia Institute // @mattgrudnoff
Quality research, analysis, explainers and factchecks from experts you can trust.
Host: Ebony Bennett, Deputy Director, the Australia Institute // @ebonybennett
Show notes:
Australia has an illness system, not a health system by Luke Slawomirski, The Point (July 2026)
Millions delay or skip appointments as specialist care become too expensive for many Australians – new research, the Australia Institute (August 2026)
Why scrapping the age-based private health insurance rebate makes sense by Luke Slawomirski, The Point (September 2026)
The quarter of a trillion dollar shortfall leaving states and territories scrambling, the Australia Institute (September 2026)
Theme music: Pulse and Thrum; additional music by Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au. Subscribe to Follow the Money on Apple Podcasts, Spotify, Pocket Casts or wherever you get your favourite podcasts.
