IDEAS home Printed from https://ideas.repec.org/a/eee/hepoli/v155y2025ics0168851025000521.html
   My bibliography  Save this article

Medicare austerity reforms and patient out-of-pocket costs: The experience from Australian cancer patients

Author

Listed:
  • Naghsh-Nejad, Maryam
  • Van Gool, Kees
  • Haywood, Phil
  • Hall, Jane

Abstract

In this paper, we examine trends in provider fees charged, government expenditure on private out-of-hospital medical services, and out of pocket costs following policy changes intended to reduce government expenditure. We examine the experience of a high-need patient group: people diagnosed with cancer. The Australian system for these services is predominantly publicly funded under fee for service; with no government control on the fees charged by providers. We calculate out of pocket costs for patients in the 12 months following a cancer diagnosis and find a large variation in these costs according to the type of treatment received as well as the place of residence and presence of additional government protection. We find that volumes of services, provider fees, and out of pocket costs rose over time. These findings are especially important for a high-need patient group as out of pocket costs are considered a barrier to access to healthcare. Governments may respond to the long-term fiscal challenges by attempting to constrain benefits it pays; our results demonstrate that careful consideration of the full impact of such policies is needed.

Suggested Citation

  • Naghsh-Nejad, Maryam & Van Gool, Kees & Haywood, Phil & Hall, Jane, 2025. "Medicare austerity reforms and patient out-of-pocket costs: The experience from Australian cancer patients," Health Policy, Elsevier, vol. 155(C).
  • Handle: RePEc:eee:hepoli:v:155:y:2025:i:c:s0168851025000521
    DOI: 10.1016/j.healthpol.2025.105296
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0168851025000521
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.healthpol.2025.105296?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Emily J. Callander & Haylee Fox & Daniel Lindsay, 2019. "Out-of-pocket healthcare expenditure in Australia: trends, inequalities and the impact on household living standards in a high-income country with a universal health care system," Health Economics Review, Springer, vol. 9(1), pages 1-8, December.
    2. Denzil G. Fiebig & Kees van Gool & Jane Hall & Chunzhou Mu, 2021. "Health care use in response to health shocks: Does socio‐economic status matter?," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3032-3050, December.
    3. Yu, Serena & van Gool, Kees & Hall, Jane & Fiebig, Denzil G., 2019. "Physician pricing behavior: Evidence from an Australian experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 20-34.
    4. Rizzo, John A. & Zeckhauser, Richard J., 2007. "Pushing incomes to reference points: Why do male doctors earn more?," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 514-536, July.
    5. Meliyanni Johar & Chunzhou Mu & Kees Van Gool & Chun Yee Wong, 2017. "Bleeding Hearts, Profiteers, or Both: Specialist Physician Fees in an Unregulated Market," Health Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 528-535, April.
    6. Pulok, Mohammad Habibullah & van Gool, Kees & Hall, Jane, 2020. "Inequity in physician visits: the case of the unregulated fee market in Australia," Social Science & Medicine, Elsevier, vol. 255(C).
    7. Glenn Jones & Elizabeth Savage & Kees Van Gool, 2008. "The Distribution of Household Health Expenditures in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 99-114, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sabanovic, Hana & La Brooy, Camille & Méndez, Susan J. & Yong, Jongsay & Scott, Anthony & Elshaug, Adam G. & Prang, Khic-Houy, 2023. "“It's not a one operation fits all”: A qualitative study exploring fee setting and participation in price transparency initiatives amongst medical specialists in the Australian private healthcare sect," Social Science & Medicine, Elsevier, vol. 339(C).
    2. Susan J. Méndez & Jongsay Yong & Hugh Gravelle & Anthony Scott, 2024. "Medical pricing decisions: Evidence from Australian specialists," Melbourne Institute Working Paper Series wp2024n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Pulok, Mohammad Habibullah & van Gool, Kees & Hall, Jane, 2020. "Horizontal inequity in the utilisation of healthcare services in Australia," Health Policy, Elsevier, vol. 124(11), pages 1263-1271.
    4. Naghsh-Nejad, Maryam & van Gool, Kees, 2024. "Impact of time of diagnosis on out-of-pocket costs of cancer treatment, a side effect of health insurance design in Australia," Health Policy, Elsevier, vol. 145(C).
    5. Denzil G. Fiebig & Kees van Gool & Jane Hall & Chunzhou Mu, 2021. "Health care use in response to health shocks: Does socio‐economic status matter?," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3032-3050, December.
    6. Naghsh Nejad, Maryam & Yu, Serena & Haywood, Philip, 2023. "Provider Responses to the Expansion of Public Subsidies in Healthcare: The Case of Oral Chemotherapy Treatment in Australia," IZA Discussion Papers 16060, Institute of Labor Economics (IZA).
    7. Saxby, Karinna & Buchmueller, Thomas & de New, Sonja C. & Petrie, Dennis, 2025. "Regional variation in mental healthcare utilization and suicide: Evidence from movers in Australia," Journal of Health Economics, Elsevier, vol. 102(C).
    8. Callander, Emily J. & Shand, Antonia & Nassar, Natasha, 2021. "Inequality in out of pocket fees, government funding and utilisation of maternal health services in Australia," Health Policy, Elsevier, vol. 125(6), pages 701-708.
    9. Yong, Jongsay & Elshaug, Adam G & Mendez, Susan J & Prang, Khic-Houy & Scott, Anthony, 2024. "Sources of specialist physician fee variation: Evidence from Australian health insurance claims data," Health Policy, Elsevier, vol. 147(C).
    10. Saxby, Karinna & Buchmueller, Thomas & de New, Sonja C. & Petrie, Dennis, 2025. "Regional variation in mental healthcare utilization and suicide: Evidence from movers in Australia," Journal of Health Economics, Elsevier, vol. 102(C).
    11. Olukorede Abiona & Phil Haywood & Serena Yu & Jane Hall & Denzil G. Fiebig & Kees van Gool, 2024. "Physician responses to insurance benefit restrictions: The case of ophthalmology," Health Economics, John Wiley & Sons, Ltd., vol. 33(5), pages 911-928, May.
    12. repec:dau:papers:123456789/1637 is not listed on IDEAS
    13. Wolfgang Frimmel & Felix Glaser, 2024. "Socio-Economic Inequality in Mortality and Healthcare Utilization: Evidence from Cancer Patients," Economics working papers 2024-14, Department of Economics, Johannes Kepler University Linz, Austria.
    14. Hernández-Pizarro, Helena M. & Nicodemo, Catia & Casasnovas, Guillem López, 2020. "Discontinuous system of allowances: The response of prosocial health-care professionals," Journal of Public Economics, Elsevier, vol. 190(C).
    15. Chunzhou Mu & Shiko Maruyama, 2024. "An Incentive Program with Almost no Incentive: Overlooked Benefits of Pay for Performance," The Economic Record, The Economic Society of Australia, vol. 100(331), pages 491-512, December.
    16. Jun, Dajung & Scott, Anthony, 2023. "The impact of changes in a physician fee schedule on medical expenditures, fees, and volume of services. Evidence from a national fee schedule reform in Australia," Social Science & Medicine, Elsevier, vol. 337(C).
    17. Jay Dev Dubey, 2021. "Measuring Income Elasticity of Healthcare-Seeking Behavior in India: A Conditional Quantile Regression Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 767-793, December.
    18. Jackie Cumming & Steven Stillman & Michelle Poland, 2009. "Who Pays What for Primary Health Care? Patterns and Determinants of the Fees Paid by Patients in a Mixed Public-Private Financing Model," Working Papers 09_01, Motu Economic and Public Policy Research.
    19. Jones, Melanie K. & Kaya, Ezgi, 2021. "The Gender Pay Gap in UK Medicine," IZA Discussion Papers 14177, Institute of Labor Economics (IZA).
    20. Gravelle, Hugh & Hole, Arne Risa & Santos, Rita, 2011. "Measuring and testing for gender discrimination in physician pay: English family doctors," Journal of Health Economics, Elsevier, vol. 30(4), pages 660-674, July.
    21. Jane Hall & Kees van Gool & Philip Haywood & Denzil Fiebig, 2024. "Medicare at 40: Are We Showing Our Age?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 57(2), pages 200-205, June.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:hepoli:v:155:y:2025:i:c:s0168851025000521. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu or the person in charge (email available below). General contact details of provider: http://www.elsevier.com/locate/healthpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.