Thursday, September 26, 2013

More than $140 billion spent on health - report

More than $140 billion was spent on health in Australia in 2011-12, according to a report released by the Australian Institute of Health and Welfare.

The report, Health expenditure Australia 2011-12, shows health spending was estimated to be $140.2 billion in 2011-12 - up from $132.6 billion in 2010-11 and from $82.9 billion 10 years earlier in 2001-02 (after adjusting for inflation).

Almost 70% of total health expenditure during 2011-12 was funded by governments, with the Australian Government contributing 42.4%, and state and territory governments contributing 27.3%. The remaining 30.3% was funded by individuals, private health insurers, and other non-government sources.

For dental services however, the State and Federal Governments effectively reversed the ratio, so that together they only contributed 28% of dental funding, with 57% paid directly by individuals and 15% paid on their behalf by private health insurance (PHI) funds.  The chart below shows the sources of dental services funding, which totalled $8.3 billion in 2011/12.


These figures are the most recent available from the Australian Institute of Health and Welfare and yet we know that from December 2012, most of the large red wedge in this pie chart was removed.

In the period between December 2012 and December 2013, the Teen Dental Program continues and National Partnership Agreements related to waiting list reductions have been established between the Commonwealth and the States.  These waiting list programs run until March 2015, and the new adult scheme, which the incoming Coalition Government has advised it will honour, does not start until around July 2014.  The Grow Up Smiling funds will become available from 1 January 2014, replacing the Teen Dental Program and providing care for children and young people aged 2-17 years.

The consequence of these changes is that we have seen a drop of approximately 10% in dental expenditure during 2013, and overall dental spending levels are not expected to return to 2011/12 levels until 2014/15.  Less publicly funded dental care has been available this year, and dental practices have often reduced working hours for employee dentists.