Australia has a universal healthcare system called Medicare, which is funded through taxes rather than direct payments at the point of care. Australian residents and citizens receive most medical services free or at heavily subsidized rates through Medicare, including doctor visits, hospital stays, and diagnostic tests.
However, the healthcare system does involve some out-of-pocket costs. Patients typically pay a small portion of doctor visit fees (called a 'gap'), dental and optical care are not fully covered by Medicare and often require separate payment, and prescription medications have capped costs through the Pharmaceutical Benefits Scheme. Private health insurance is optional and offers coverage for private hospital care and certain services not fully covered by Medicare.
Medicare is funded through the Medicare levy, a tax of 2% on income for most Australian residents, plus additional levies on high-income earners without private insurance. This system means Australians do not face large medical bills for essential healthcare, though they do contribute through taxation and may choose to pay for private services or insurance. Emergency care and public hospital treatment are provided regardless of ability to pay.