Healthcare expenditure

HMS, HAG 2025 HSC 5 MC

Which row of the table correctly identifies advantages of Medicare and private health
insurance?

\begin{align*}
\begin{array}{l}
\rule{0pt}{2.5ex} \ \rule[-1ex]{0pt}{0pt}& \\
\rule{0pt}{2.5ex} \rule[-1ex]{0pt}{0pt}\\
\rule{0pt}{2.5ex}\textbf{A.}\rule[-1ex]{0pt}{0pt}\\
\rule[-1ex]{0pt}{0pt}\\
\rule{0pt}{2.5ex}\textbf{B.}\rule[-1ex]{0pt}{0pt}\\
\rule[-1ex]{0pt}{0pt}\\
\rule{0pt}{2.5ex}\textbf{C.}\rule[-1ex]{0pt}{0pt}\\
\rule[-1ex]{0pt}{0pt}\\
\rule{0pt}{2.5ex}\textbf{D.}\rule[-1ex]{0pt}{0pt}\\
\rule[-1ex]{0pt}{0pt}\\
\end{array}
\begin{array}{|l|l|}
\hline
\rule{0pt}{2.5ex}Medicare\rule[-1ex]{0pt}{0pt}& Private \ health \ insurance \\
\hline
\rule{0pt}{2.5ex}\text{Covers all surgeries in hospitals}&\text{Shorter waiting times for}\\
\text{}\rule[-1ex]{0pt}{0pt}&\text{surgery }\\
\hline
\rule{0pt}{2.5ex}\text{Provides free access to all }\rule[-1ex]{0pt}{0pt}& \text{Ensures no out-of-pocket costs}\\
\text{healthcare services }& \text{for elective surgeries}\\
\hline
\rule{0pt}{2.5ex}\text{Bulk billing may be available in} & \text{Choice of surgeon } \\
\text{in medical practices} \\
\hline
\rule{0pt}{2.5ex}\text{Choice of doctor } & \text{Eliminates the need to access Medicare } \\
\text{}\rule[-1ex]{0pt}{0pt}& \text{Medicare } \\
\hline
\end{array}
\end{align*}

Show Answers Only

$C$

Show Worked Solution

C is correct: Bulk billing removes upfront costs at some practices; private insurance offers surgeon selection.

Other Options:

A is incorrect: Medicare covers public hospital treatment as public patient, not all surgeries universally.
B is incorrect: Medicare doesn’t provide free access to all services; private insurance has gap payments.
D is incorrect: Private insurance complements Medicare, doesn’t eliminate need for Medicare coverage.

HMS, HAG EQ-Bank 195

Explain how projected increases in government health spending will impact future generations of Australians. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Projected increases in government health spending will result in higher taxation burdens for future generations because growing healthcare costs must be funded through government revenue.
This occurs because Australia’s ageing population creates increased demand for healthcare services, requiring substantial government investment in hospitals, aged care and medical treatments.
The reason this impacts future generations is current health spending trends indicate exponential growth over coming decades, placing financial pressure on younger taxpayers to support these costs.
Consequently, future Australians may experience reduced government spending in other areas like education and infrastructure as healthcare consumes an increasing proportion of the national budget.
This leads to intergenerational equity concerns because younger generations will bear the financial responsibility for healthcare services primarily used by older populations.
Therefore, sustainable healthcare financing requires innovative funding models and preventive strategies to ensure future generations can access quality healthcare without unsustainable debt burdens.

Show Worked Solution

Projected increases in government health spending will result in higher taxation burdens for future generations because growing healthcare costs must be funded through government revenue.
This occurs because Australia’s ageing population creates increased demand for healthcare services, requiring substantial government investment in hospitals, aged care and medical treatments.
The reason this impacts future generations is current health spending trends indicate exponential growth over coming decades, placing financial pressure on younger taxpayers to support these costs.
Consequently, future Australians may experience reduced government spending in other areas like education and infrastructure as healthcare consumes an increasing proportion of the national budget.
This leads to intergenerational equity concerns because younger generations will bear the financial responsibility for healthcare services primarily used by older populations.
Therefore, sustainable healthcare financing requires innovative funding models and preventive strategies to ensure future generations can access quality healthcare without unsustainable debt burdens.

HMS, HAG EQ-Bank 194

Explain how Commonwealth-funded programs like NDIS and My Aged Care address equity in Australia's healthcare system. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Commonwealth programs ensure equitable access to healthcare because they provide direct funding to vulnerable populations who might otherwise struggle to afford essential services.
The reason NDIS promotes equity is it eliminates financial barriers for people with disability by providing individualised funding packages based on assessed needs rather than ability to pay.
This creates equal opportunities because participants can access therapeutic supports, assistive technology and community participation programs regardless of their economic circumstances.
My Aged Care contributes to equity by providing government-funded services that enable older Australians to remain at home longer and access aged care facilities when needed.
Consequently, these programs ensure healthcare access is not determined by wealth or family support because government funding removes the cost burden from individuals and families.
Therefore, Commonwealth programs address inequities by targeting specific population groups who face barriers to healthcare access, creating a more equitable system for all Australians.

Show Worked Solution

Commonwealth programs ensure equitable access to healthcare because they provide direct funding to vulnerable populations who might otherwise struggle to afford essential services.
The reason NDIS promotes equity is it eliminates financial barriers for people with disability by providing individualised funding packages based on assessed needs rather than ability to pay.
This creates equal opportunities because participants can access therapeutic supports, assistive technology and community participation programs regardless of their economic circumstances.
My Aged Care contributes to equity by providing government-funded services that enable older Australians to remain at home longer and access aged care facilities when needed.
Consequently, these programs ensure healthcare access is not determined by wealth or family support because government funding removes the cost burden from individuals and families.
Therefore, Commonwealth programs address inequities by targeting specific population groups who face barriers to healthcare access, creating a more equitable system for all Australians.

HMS, HAG EQ-Bank 193

Describe how the National Disability Insurance Scheme (NDIS) supports Australians with disability. (3 marks)

--- 9 WORK AREA LINES (style=lined) ---

Show Answers Only

The NDIS provides direct funding to individuals with disability to access support services and fee-for-service providers.
Therapeutic supports include physiotherapy, occupational therapy and speech pathology services to address developmental challenges.
Assistive technology funding covers mobility aids, communication devices and home modifications to improve independence.
Community participation programs facilitate social inclusion and recreational activities for people with disability.
Early intervention services support young children with developmental delays through specialised programs and therapies.

Show Worked Solution

The NDIS provides direct funding to individuals with disability to access support services and fee-for-service providers.
Therapeutic supports include physiotherapy, occupational therapy and speech pathology services to address developmental challenges.
Assistive technology funding covers mobility aids, communication devices and home modifications to improve independence.
Community participation programs facilitate social inclusion and recreational activities for people with disability.
Early intervention services support young children with developmental delays through specialised programs and therapies.

HMS, HAG EQ-Bank 192

Explain how Australia's ageing population impacts the sustainability of the healthcare system. (4 marks)

--- 14 WORK AREA LINES (style=lined) ---

Show Answers Only

Australia’s ageing population creates increased demand for healthcare services because older adults require more frequent medical treatments and chronic disease management.
This leads to higher healthcare expenditure as more Australians need access to specialists, hospital services and ongoing medication.
The reason this impacts sustainability is the healthcare workforce must expand to meet growing demand from older patients.
Consequently, government health spending increases substantially because older Australians use healthcare services more intensively than younger populations.
This results in greater pressure on public hospitals as emergency departments experience higher patient volumes.
Therefore, the demographic shift threatens sustainability unless substantial investment occurs in workforce development and preventive services.

Show Worked Solution

Australia’s ageing population creates increased demand for healthcare services because older adults require more frequent medical treatments and chronic disease management.
This leads to higher healthcare expenditure as more Australians need access to specialists, hospital services and ongoing medication.
The reason this impacts sustainability is the healthcare workforce must expand to meet growing demand from older patients.
Consequently, government health spending increases substantially because older Australians use healthcare services more intensively than younger populations.
This results in greater pressure on public hospitals as emergency departments experience higher patient volumes.
Therefore, the demographic shift threatens sustainability unless substantial investment occurs in workforce development and preventive services.

HMS, HAG EQ-Bank 191

Describe the main challenges facing the sustainability of Australia's healthcare system. (3 marks)

--- 9 WORK AREA LINES (style=lined) ---

Show Answers Only

Australia’s ageing population increases demand for healthcare services as they require more frequent medical treatment.
Rising healthcare costs create financial pressure on government budgets, making it difficult to maintain current service levels.
Rural and remote areas lack adequate health services, creating inequities in healthcare access for these communities.
Healthcare workforce shortages limit the system’s capacity to meet growing demand for medical professionals.
Chronic diseases are becoming more prevalent, requiring ongoing management that strains the healthcare system long-term.

Show Worked Solution

Australia’s ageing population increases demand for healthcare services as they require more frequent medical treatment.
Rising healthcare costs create financial pressure on government budgets, making it difficult to maintain current service levels.
Rural and remote areas lack adequate health services, creating inequities in healthcare access for these communities.
Healthcare workforce shortages limit the system’s capacity to meet growing demand for medical professionals.
Chronic diseases are becoming more prevalent, requiring ongoing management that strains the healthcare system long-term.

HMS, HAG EQ-Bank 190

Discuss the advantages and disadvantages of private health insurance for Australia's healthcare system. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Advantages of private health insurance:

[P] Private health insurance reduces pressure on Australia’s public healthcare system by diverting patients to private facilities.
[E] This occurs when insured patients choose private hospitals for elective surgery and specialist treatment rather than using public services.
[Ev] Almost half of all Australians have private hospital cover, which helps manage demand on public hospital waiting lists and emergency departments.
[L] Therefore, private insurance supports the sustainability of public healthcare by sharing the patient load across both sectors.

However, private insurance creates notable disadvantages:

[P] Conversely, private health insurance can increase healthcare inequality between different socioeconomic groups in Australian society.
[E] This happens because wealthy Australians can afford comprehensive private cover while lower income groups rely solely on public services.
[Ev] Young people, elderly patients and those with limited income have lower rates of private insurance, potentially creating a two-tiered healthcare system.
[L] Consequently, private insurance may undermine the equity principles that underpin Australia’s universal healthcare approach through Medicare.

Show Worked Solution

Advantages of private health insurance:

[P] Private health insurance reduces pressure on Australia’s public healthcare system by diverting patients to private facilities.
[E] This occurs when insured patients choose private hospitals for elective surgery and specialist treatment rather than using public services.
[Ev] Almost half of all Australians have private hospital cover, which helps manage demand on public hospital waiting lists and emergency departments.
[L] Therefore, private insurance supports the sustainability of public healthcare by sharing the patient load across both sectors.

However, private insurance creates notable disadvantages:

[P] Conversely, private health insurance can increase healthcare inequality between different socioeconomic groups in Australian society.
[E] This happens because wealthy Australians can afford comprehensive private cover while lower income groups rely solely on public services.
[Ev] Young people, elderly patients and those with limited income have lower rates of private insurance, potentially creating a two-tiered healthcare system.
[L] Consequently, private insurance may undermine the equity principles that underpin Australia’s universal healthcare approach through Medicare.

HMS, HAG EQ-Bank 189

Explain how government policies encourage Australians to take up private health insurance. (4 marks)

--- 12 WORK AREA LINES (style=lined) ---

Show Answers Only

Government rebates provide financial incentives for private health insurance by reducing premium costs through income-tested rebates.
The reason for the Medicare levy surcharge is to encourage higher income earners to purchase private insurance, as those earning above threshold amounts pay additional tax without appropriate hospital cover.
This creates financial pressure on wealthy Australians because avoiding the surcharge makes private insurance more cost-effective than paying extra tax.
The lifetime health cover incentive ensures people join insurance funds early by offering lower premiums for those maintaining hospital cover from a young age.
Consequently, these combined policies result in reduced burden on public hospitals while encouraging Australians to take personal responsibility for their healthcare costs.

Show Worked Solution

Government rebates provide financial incentives for private health insurance by reducing premium costs through income-tested rebates.
The reason for the Medicare levy surcharge is to encourage higher income earners to purchase private insurance, as those earning above threshold amounts pay additional tax without appropriate hospital cover.
This creates financial pressure on wealthy Australians because avoiding the surcharge makes private insurance more cost-effective than paying extra tax.
The lifetime health cover incentive ensures people join insurance funds early by offering lower premiums for those maintaining hospital cover from a young age.
Consequently, these combined policies result in reduced burden on public hospitals while encouraging Australians to take personal responsibility for their healthcare costs.

HMS, HAG EQ-Bank 188

Describe the main reasons why Australians choose private health insurance. (3 marks)

--- 9 WORK AREA LINES (style=lined) ---

Show Answers Only

Private health insurance provides shorter waiting times for elective surgery and specialist appointments compared to public healthcare services.
Patients can choose their preferred doctor and hospital for treatment, offering greater control over their healthcare decisions.
Insurance covers ancillary services like dental care, physiotherapy and chiropractic treatment that Medicare does not fund.
Private rooms in hospitals provide increased privacy and comfort during treatment and recovery periods.
Tax benefits include rebates for insurance premiums and avoiding the Medicare levy surcharge for higher income earners.

Show Worked Solution

Private health insurance provides shorter waiting times for elective surgery and specialist appointments compared to public healthcare services.
Patients can choose their preferred doctor and hospital for treatment, offering greater control over their healthcare decisions.
Insurance covers ancillary services like dental care, physiotherapy and chiropractic treatment that Medicare does not fund.
Private rooms in hospitals provide increased privacy and comfort during treatment and recovery periods.
Tax benefits include rebates for insurance premiums and avoiding the Medicare levy surcharge for higher income earners.

HMS, HAG EQ-Bank 187

Explain how Medicare contributes to equity in Australia's healthcare system. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Medicare provides universal access to healthcare regardless of income level because it operates as a taxpayer-funded system available to all Australians.
This occurs through the Medicare levy system where contributions are based on taxable income, ensuring higher earners contribute more while everyone receives the same basic healthcare coverage.
Medicare promotes equity because bulk billing allows patients to receive medical services without out-of-pocket costs, removing financial barriers that might prevent low-income Australians from accessing healthcare.
This system enables free public hospital treatment for all patients regardless of their financial circumstances, ensuring equal access to emergency and essential medical services.
As a result, Medicare creates a safety net that prevents healthcare becoming available only to those who can afford private treatment, maintaining social equity across different socioeconomic groups.
Therefore, the universal nature of Medicare ensures that healthcare access is not determined by wealth, contributing to fairer health outcomes for all Australians.

Show Worked Solution

Medicare provides universal access to healthcare regardless of income level because it operates as a taxpayer-funded system available to all Australians.
This occurs through the Medicare levy system where contributions are based on taxable income, ensuring higher earners contribute more while everyone receives the same basic healthcare coverage.
Medicare promotes equity because bulk billing allows patients to receive medical services without out-of-pocket costs, removing financial barriers that might prevent low-income Australians from accessing healthcare.
This system enables free public hospital treatment for all patients regardless of their financial circumstances, ensuring equal access to emergency and essential medical services.
As a result, Medicare creates a safety net that prevents healthcare becoming available only to those who can afford private treatment, maintaining social equity across different socioeconomic groups.
Therefore, the universal nature of Medicare ensures that healthcare access is not determined by wealth, contributing to fairer health outcomes for all Australians.

HMS, HAG EQ-Bank 186

Describe the key features of Medicare that provide accessible healthcare for Australians. (3 marks)

--- 9 WORK AREA LINES (style=lined) ---

Show Answers Only

Medicare is Australia’s universal healthcare system providing free treatment as a public patient in public hospitals.
The system offers subsidised treatment by GPs and specialists, funded through income taxes and the Medicare levy.
Bulk billing allows doctors to accept Medicare payment as full payment, meaning patients pay nothing out of pocket.
Medicare covers optometrist services and oral surgery but excludes private dentistry, physiotherapy and chiropractic treatment.
The schedule fee system sets standard government fees, though some doctors may charge above this amount.

Show Worked Solution

Medicare is Australia’s universal healthcare system providing free treatment as a public patient in public hospitals.
The system offers subsidised treatment by GPs and specialists, funded through income taxes and the Medicare levy.
Bulk billing allows doctors to accept Medicare payment as full payment, meaning patients pay nothing out of pocket.
Medicare covers optometrist services and oral surgery but excludes private dentistry, physiotherapy and chiropractic treatment.
The schedule fee system sets standard government fees, though some doctors may charge above this amount.

HMS, HAG EQ-Bank 185

Discuss the benefits and challenges of increasing funding for preventive health strategies in Australia's healthcare system. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Benefits of increasing prevention funding:

[P] Preventive health strategies offer significant cost-effectiveness for Australia’s healthcare system.
[E] This occurs because prevention programs cost much less than treating diseases after they develop, providing better value for taxpayer investment.
[Ev] Programs like SunSmart campaigns, QUIT smoking initiatives and breast screening demonstrate how early intervention reduces expensive treatment costs for cancer and cardiovascular disease.
[L] Therefore, increased prevention funding leads to substantial long-term savings for the healthcare system while improving population health outcomes.

However, prevention funding faces notable challenges:

[P] Conversely, prevention benefits may take considerable time to show measurable health outcomes in the community.
[E] This creates political and public pressure for immediate, visible results from healthcare investments rather than long-term benefits.
[Ev] Preventive programs require sustained funding over many years before mortality and morbidity improvements become evident, making them less politically attractive than immediate treatment services.
[L] Consequently, governments may prioritise immediate treatment services over long-term prevention strategies despite prevention representing better overall value for the healthcare system.

Show Worked Solution

Benefits of increasing prevention funding:

[P] Preventive health strategies offer significant cost-effectiveness for Australia’s healthcare system.
[E] This occurs because prevention programs cost much less than treating diseases after they develop, providing better value for taxpayer investment.
[Ev] Programs like SunSmart campaigns, QUIT smoking initiatives and breast screening demonstrate how early intervention reduces expensive treatment costs for cancer and cardiovascular disease.
[L] Therefore, increased prevention funding leads to substantial long-term savings for the healthcare system while improving population health outcomes.

However, prevention funding faces notable challenges:

[P] Conversely, prevention benefits may take considerable time to show measurable health outcomes in the community.
[E] This creates political and public pressure for immediate, visible results from healthcare investments rather than long-term benefits.
[Ev] Preventive programs require sustained funding over many years before mortality and morbidity improvements become evident, making them less politically attractive than immediate treatment services.
[L] Consequently, governments may prioritise immediate treatment services over long-term prevention strategies despite prevention representing better overall value for the healthcare system.

HMS, HAG EQ-Bank 184

Explain the relationship between healthcare costs and prevention strategies in Australia's health system. (4 marks)

--- 12 WORK AREA LINES (style=lined) ---

Show Answers Only

Healthcare costs and prevention strategies have an inverse relationship because prevention costs are much lower than treating diseases after they develop.
The reason for this is lifestyle factors cause most premature deaths, yet the majority of healthcare spending focuses on treatment rather than prevention.
This leads to significant cost savings when prevention programs like QUIT and screening programs are implemented early.
Consequently, increased prevention funding results in lower long-term healthcare costs by avoiding expensive treatments for conditions like heart disease and stroke.
This demonstrates why government investment in prevention represents better value than treatment approaches for Australia’s health system.
As a result, prevention strategies enable better health outcomes while managing the trend of rising healthcare expenditure more sustainably.

Show Worked Solution

Healthcare costs and prevention strategies have an inverse relationship because prevention costs are much lower than treating diseases after they develop.
The reason for this is lifestyle factors cause most premature deaths, yet the majority of healthcare spending focuses on treatment rather than prevention.
This leads to significant cost savings when prevention programs like QUIT and screening programs are implemented early.
Consequently, increased prevention funding results in lower long-term healthcare costs by avoiding expensive treatments for conditions like heart disease and stroke.
This demonstrates why government investment in prevention represents better value than treatment approaches for Australia’s health system.
As a result, prevention strategies enable better health outcomes while managing the trend of rising healthcare expenditure more sustainably.

HMS, HAG EQ-Bank 92 MC

The projected six-fold increase in health spending on Australians aged over 65 by 2063 will require healthcare system innovation primarily because:

Current treatment methods will become obsolete by 2063
Private health insurance will no longer cover aged care services
Rural healthcare services will be completely privatised by that time
Quality person-centred sustainable services need substantial funding for preventive and evidence-based approaches

Show Answers Only

$D$

Show Worked Solution

D is correct: Innovation requires substantial funding for preventive and evidence-based health services to provide quality person-centred care.

Other Options:

A is incorrect: Innovation needed for service delivery models not because treatments become obsolete.
B is incorrect: Private insurance coverage changes don’t drive the need for healthcare system innovation.
C is incorrect: Rural privatisation is not the primary driver requiring healthcare system innovation.

HMS, HAG EQ-Bank 91 MC

In the 2023-24 Australian government budget, the allocation of $5.7 billion for strengthening Medicare compared to $1.1 billion for health prevention and protection indicates:

The government prioritises treatment services over preventive health measures in budget allocation
Prevention programs are adequately funded relative to their importance
Medicare and prevention receive equal per capita funding across Australia
Private health insurance covers most prevention costs reducing government expenditure needs

Show Answers Only

$A$

Show Worked Solution

A is correct: The spending ratio shows government prioritises treatment services through Medicare over preventive measures.

Other Options:

B is incorrect: The 5:1 spending ratio suggests prevention remains under-resourced compared to treatment.
C is incorrect: Medicare receives five times more funding than prevention not equal amounts.
D is incorrect: Government still needs to fund prevention programs private insurance doesn’t cover most prevention.

HMS, HAG EQ-Bank 90 MC

The Australian government's commitment of $537 billion between 2022-26 demonstrates:

A shift away from Medicare towards private health insurance funding
Continued investment in the health system with substantial long-term financial commitment
Reduction in health spending compared to previous budget periods
Focus solely on hospital infrastructure rather than healthcare services

Show Answers Only

$B$

Show Worked Solution

B is correct: The $537 billion commitment shows continued investment and substantial long-term financial commitment to health.

Other Options:

A is incorrect: The commitment includes strengthening Medicare not shifting away from it.
C is incorrect: This represents continued substantial investment not reduction in health spending.
D is incorrect: The commitment covers broad health system investment not just hospital infrastructure.

HMS, HAG EQ-Bank 89 MC

The National Disability Insurance Scheme (NDIS) provides funding directly to:

Healthcare providers and medical specialists
State governments for disability service coordination
Individuals with disability to access supports and services
Private insurance companies for disability coverage

Show Answers Only

$C$

Show Worked Solution

C is correct: NDIS provides funding directly to individuals and helps access supports and fee-for-service providers.

Other Options:

A is incorrect: NDIS funds individuals not healthcare providers directly though individuals use funding for services.
B is incorrect: NDIS is Commonwealth-funded scheme that provides direct funding to individuals not states.
D is incorrect: NDIS is government scheme not private insurance company funding arrangement.

HMS, HAG EQ-Bank 88 MC

Healthcare sustainability challenges related to access and equity are primarily caused by:

Insufficient private health insurance coverage in metropolitan areas
Lack of advanced medical technology in public hospitals
Disparities based on cultural, ethnic, socioeconomic and geographic factors affecting health literacy and service access
Overuse of telehealth services reducing face-to-face consultations

Show Answers Only

$C$

Show Worked Solution

C is correct: Notable differences in patient outcomes based on cultural ethnic socioeconomic and geographic factors create sustainability challenges.

Other Options:

A is incorrect: Metropolitan areas generally have better access sustainability challenges affect rural areas more.
B is incorrect: Technology gaps exist but broader access disparities create greater sustainability issues.
D is incorrect: Telehealth improves rather than reduces access particularly for remote populations.

HMS, HAG EQ-Bank 87 MC

The ageing population will impact healthcare sustainability because:

Older people prefer private health insurance over Medicare services
There will be increased demand for healthcare services requiring more workforce and funding
Prevention programs become less effective for people over 65 years
Rural areas will have better access to healthcare than urban centres

Show Answers Only

$B$

Show Worked Solution

B is correct: Increased demand from ageing population will result in higher costs and workforce needs.

Other Options:

A is incorrect: Insurance preference doesn’t create sustainability challenges the increased demand does.
C is incorrect: Prevention programs remain important for all age groups including older adults.
D is incorrect: Rural areas face greater not better healthcare access challenges than urban centres.

HMS, HAG EQ-Bank 86 MC

Which factor creates the greatest challenge when evaluating the effectiveness of prevention versus treatment spending?

Prevention programs require larger upfront investments than treatment options
Treatment outcomes can be measured immediately while prevention benefits are delayed
Prevention strategies only work for communicable diseases not chronic conditions
It may take some time to see the benefits of expenditure on preventative programs

Show Answers Only

$D$

Show Worked Solution

D is correct: Prevention program benefits are delayed making evaluation of effectiveness challenging compared to immediate treatment results.

Other Options:

A is incorrect: Prevention is generally more cost-effective requiring smaller not larger investments.
B is incorrect: This describes the issue but doesn’t identify the core evaluation challenge.
C is incorrect: Prevention strategies work for both communicable and chronic diseases like cardiovascular disease.

HMS, HAG EQ-Bank 85 MC

The argument for increased prevention funding based on "containment of increasing costs" suggests that:

Without prevention focus, healthcare costs could make adequate care unaffordable for ordinary Australians
Prevention activities require expensive technological equipment to be effective
Prevention programs generate revenue that can fund treatment services
Private health insurance should cover all prevention costs to reduce government spending

Show Answers Only

$A$

Show Worked Solution

A is correct: Prevention is the best way of containing continually increasing healthcare costs that could become unaffordable.

Other Options:

B is incorrect: Prevention activities use existing accessible community structures not expensive technology.
C is incorrect: Prevention programs don’t generate revenue they save costs by preventing illness.
D is incorrect: The argument focuses on government investment in prevention not private insurance coverage.

HMS, HAG EQ-Bank 84 MC

Which statement BEST describes the current balance between healthcare and prevention spending in Australia?

Equal funding is allocated to both treatment and prevention programs
The majority of health expenditure is directed towards medical treatments rather than prevention
Prevention programs receive more funding than treatment due to their cost-effectiveness
Private health insurance covers most prevention costs while government funds treatment

Show Answers Only

$B$

Show Worked Solution

B is correct: The majority of healthcare spending is directed towards medical treatments rather than prevention.

Other Options:

A is incorrect: Funding is not equally allocated between treatment and prevention programs.
C is incorrect: Despite cost-effectiveness prevention programs remain under-resourced compared to treatment.
D is incorrect: Government Medicare covers both while private insurance focuses on treatment options.

HMS, HAG 2012 HSC 33a

What issues should be considered when determining the allocation of funding to address health inequities of specific population groups? (8 marks)

--- 24 WORK AREA LINES (style=lined) ---

Show Answers Only

Population health data guides funding priorities by identifying groups with the greatest health disparities and highest disease burden.
Epidemiological evidence reveals mortality and morbidity patterns that inform resource allocation decisions.
For example, higher cardiovascular disease rates among Aboriginal and Torres Strait Islander peoples necessitate increased funding for culturally appropriate prevention programs.
Geographic accessibility influences funding distribution as remote and rural populations require different service delivery models.
Distance from healthcare facilities creates additional costs for mobile services, telehealth infrastructure and specialist visits.
This results in higher per-capita funding requirements for geographically isolated communities compared to metropolitan areas.
Cost-effectiveness analysis determines optimal resource allocation by comparing intervention outcomes with financial investment.
Prevention programs demonstrate better long-term value than treatment-focused approaches because they reduce future healthcare costs.
For instance, immunisation programs prevent expensive disease management while smoking cessation initiatives reduce cardiovascular treatment expenditure.
Political and social considerations affect funding decisions through community advocacy, media attention and electoral priorities.
Visible health issues attract greater public support and government commitment resulting in disproportionate funding allocation.
However, this can lead to neglect of less publicised health problems affecting smaller population groups.
Administrative capacity impacts funding effectiveness as some organisations possess better infrastructure and expertise to implement health programs successfully than others.

Show Worked Solution

Population health data guides funding priorities by identifying groups with the greatest health disparities and highest disease burden.
Epidemiological evidence reveals mortality and morbidity patterns that inform resource allocation decisions.
For example, higher cardiovascular disease rates among Aboriginal and Torres Strait Islander peoples necessitate increased funding for culturally appropriate prevention programs.
Geographic accessibility influences funding distribution as remote and rural populations require different service delivery models.
Distance from healthcare facilities creates additional costs for mobile services, telehealth infrastructure and specialist visits.
This results in higher per-capita funding requirements for geographically isolated communities compared to metropolitan areas.
Cost-effectiveness analysis determines optimal resource allocation by comparing intervention outcomes with financial investment.
Prevention programs demonstrate better long-term value than treatment-focused approaches because they reduce future healthcare costs.
For instance, immunisation programs prevent expensive disease management while smoking cessation initiatives reduce cardiovascular treatment expenditure.
Political and social considerations affect funding decisions through community advocacy, media attention and electoral priorities.
Visible health issues attract greater public support and government commitment resulting in disproportionate funding allocation.
However, this can lead to neglect of less publicised health problems affecting smaller population groups.
Administrative capacity impacts funding effectiveness as some organisations possess better infrastructure and expertise to implement health programs successfully than others.

♦♦ Mean mark 44%.

HMS, HAG 2012 HSC 21

Describe the advantages of Medicare for Australian citizens. (3 marks)

--- 9 WORK AREA LINES (style=lined) ---

Show Answers Only

Medicare provides universal healthcare coverage ensuring all Australian citizens receive subsidised medical services. Bulk billing options mean patients pay nothing for consultations with participating doctors. Medicare covers GP visits, specialist consultations and diagnostic tests at reduced costs.
Public hospital treatment is provided free of charge for Australian citizens. This removes financial barriers to accessing necessary medical care. Medicare includes pharmaceutical benefits through PBS, making prescription medications affordable regardless of economic circumstances.

Show Worked Solution

Medicare provides universal healthcare coverage ensuring all Australian citizens receive subsidised medical services. Bulk billing options mean patients pay nothing for consultations with participating doctors. Medicare covers GP visits, specialist consultations and diagnostic tests at reduced costs.
Public hospital treatment is provided free of charge for Australian citizens. This removes financial barriers to accessing necessary medical care. Medicare includes pharmaceutical benefits through PBS, making prescription medications affordable regardless of economic circumstances.

HMS, HAG 2013 HSC 23

Why is it important to prioritise particular health issues in Australia? Include examples in your answer. (5 marks)

--- 15 WORK AREA LINES (style=lined) ---

Show Answers Only

Prioritising health issues ensures efficient resource allocation to areas with greatest impact on population health. Limited healthcare funding requires strategic distribution to maximise health outcomes across diverse community needs.
Addressing health inequities becomes possible through targeted interventions for disadvantaged groups. Aboriginal and Torres Strait Islander peoples experience significantly higher chronic disease rates, requiring focused programs and culturally appropriate services.
Prevention focus enables early intervention before conditions become severe and costly. Cardiovascular disease prevention through lifestyle programs costs less than treating heart attacks and strokes requiring emergency care.
Population burden guides priorities toward conditions affecting large numbers of Australians. Mental health conditions impact millions annually, justifying substantial investment in awareness campaigns, treatment services and community support programs.
Evidence-based planning ensures interventions target conditions with proven treatment methods and measurable outcomes, improving overall healthcare system effectiveness.

Show Worked Solution

Prioritising health issues ensures efficient resource allocation to areas with greatest impact on population health. Limited healthcare funding requires strategic distribution to maximise health outcomes across diverse community needs.
Addressing health inequities becomes possible through targeted interventions for disadvantaged groups. Aboriginal and Torres Strait Islander peoples experience significantly higher chronic disease rates, requiring focused programs and culturally appropriate services.
Prevention focus enables early intervention before conditions become severe and costly. Cardiovascular disease prevention through lifestyle programs costs less than treating heart attacks and strokes requiring emergency care.
Population burden guides priorities toward conditions affecting large numbers of Australians. Mental health conditions impact millions annually, justifying substantial investment in awareness campaigns, treatment services and community support programs.
Evidence-based planning ensures interventions target conditions with proven treatment methods and measurable outcomes, improving overall healthcare system effectiveness.

HMS, HAG 2013 HSC 5 MC

Ancillary cover in private health insurance can assist with which of the following costs?

General practitioner fees
Prescription and other medications
Physiotherapy, dental services and optometry
Treatment as a private patient in either a public or private hospital

Show Answers Only

$C$

Show Worked Solution

C is correct: Ancillary cover specifically includes allied health and dental services.

Other Options:

A is incorrect: GP fees covered by Medicare, not ancillary.
B is incorrect: Medications covered by PBS, not ancillary insurance.
D is incorrect: Hospital treatment covered by hospital cover, not ancillary.

HMS, HAG 2013 HSC 1 MC

What currently is the area of greatest health care expenditure in Australia?

Research
Hospitals
Dental services
Preventative health initiatives

Show Answers Only

$B$

Show Worked Solution

B is correct: Hospitals account for largest portion of Australian health spending.

Other Options:

A is incorrect: Research receives minimal health budget allocation.
C is incorrect: Dental services are small expenditure component.
D is incorrect: Prevention receives less funding than treatment.

HMS, HAG 2014 HSC 6 MC

How do Medicare and the Pharmaceutical Benefits Scheme support the principles of social justice?

They are funded by the Australian government to supply health care services.
They provide resources only to those most in need of health services and treatment.
They allocate resources according to the needs of the population in order to promote equality of health outcomes.
They empower individuals and communities to be involved in planning and decision making to achieve good health.

Show Answers Only

$C$

Show Worked Solution

C is correct: Medicare and PBS allocate resources based on need promoting equity.

Other Options:

A is incorrect: Government funding alone doesn’t explain social justice principles.
B is incorrect: These schemes serve all Australians not just those most in need.
D is incorrect: Medicare/PBS don’t directly involve community planning participation.

HMS, HAG 2016 HSC 15 MC

Which of the following is an example of an indirect cost of chronic disease?

Purchasing medicine
Bulk billing a visit to the doctor
Purchasing a gym or health club membership
Training replacement workers to cover sick days

Show Answers Only

$D$

Show Worked Solution

D is correct: Training replacements is an indirect cost affecting workplace productivity.

Other Options:

A is incorrect: Medicine purchases are direct healthcare costs.
B is incorrect: Doctor visits are direct healthcare costs.
C is incorrect: Gym memberships are direct personal health expenses.

HMS, HAG 2016 HSC 9 MC

In which list are all the factors perceived advantages of choosing private health insurance?

Private room, reduced time on waiting lists, assigned medical practitioners
Choice of doctor, reduced time on waiting lists, access to ancillary services
Private room, decreased cost to the individual, assigned medical practitioners
Choice of doctor, increased cost to the government, access to ancillary services

Show Answers Only

$B$

Show Worked Solution

B is correct: All three factors are genuine advantages of private health insurance.

Other Options:

A is incorrect: Medical practitioners are chosen, not assigned in private system.
C is incorrect: Private insurance increases costs to individuals, not decreases.
D is incorrect: Increased government cost isn’t an advantage to individuals.

HMS, HAG 2017 HSC 31b

Assess the effectiveness of government funding aimed at improving the health status of Australians. (12 marks)

--- 28 WORK AREA LINES (style=lined) ---

Show Answers Only

Assessment Statement

Government funding demonstrates highly effective outcomes in improving Australian health status through universal healthcare access, targeted support for disadvantaged groups, and evidence-based resource allocation. Effectiveness varies across different health areas and population groups.

Healthcare Infrastructure and Universal Access

Medicare funding achieves excellent results in providing equitable healthcare access for all Australians regardless of socioeconomic status. The universal healthcare system ensures emergency treatment, specialist referrals, and prescription medications remain affordable for the entire population. Evidence supporting effectiveness includes Australia’s high life expectancy rankings internationally and reduced mortality rates from treatable conditions. However, significant gaps exist in mental health and dental care funding, creating ongoing health inequities despite substantial investment.

Targeted Funding for Disadvantaged Groups

Indigenous health funding demonstrates substantial progress through programs like Close the Gap, which specifically address health inequities experienced by Aboriginal and Torres Strait Islander peoples. Dedicated funding for Aboriginal Community Controlled Health Services provides culturally appropriate care and shows measurable improvements in immunisation rates and chronic disease management. Aged care funding through programs like My Aged Care enables elderly Australians to remain in their homes longer, reducing hospital admission rates and improving quality of life.
Disability support funding via the NDIS produces significant outcomes by providing individualised support packages that address both health and social determinants. This targeted approach demonstrates how funding allocation based on specific population needs creates sustainable health improvements rather than generic solutions.

Prevention and Health Promotion Principles

Preventative funding aligns with effective health promotion principles by addressing multiple determinants of health simultaneously. Immunisation programs exemplify the Ottawa Charter principle of developing personal skills while creating supportive environments through school-based delivery. Cancer screening funding demonstrates the principle of reorienting health services from treatment to prevention, resulting in earlier detection and improved survival rates.
Tobacco control funding successfully applies multiple health promotion strategies including policy development through taxation, community action through quit campaigns, and creating supportive environments in workplaces. This comprehensive approach produces measurable population health improvements with smoking rates declining from 24% to 11% over two decades.

Overall Assessment

Assessment reveals highly effective outcomes when funding addresses specific population needs and applies evidence-based health promotion principles. The greatest success occurs where funding combines universal access with targeted support for disadvantaged groups, demonstrating optimal resource allocation strategies.

Show Worked Solution

Assessment Statement

Government funding demonstrates highly effective outcomes in improving Australian health status through universal healthcare access, targeted support for disadvantaged groups, and evidence-based resource allocation. Effectiveness varies across different health areas and population groups.

Healthcare Infrastructure and Universal Access

Medicare funding achieves excellent results in providing equitable healthcare access for all Australians regardless of socioeconomic status. The universal healthcare system ensures emergency treatment, specialist referrals, and prescription medications remain affordable for the entire population. Evidence supporting effectiveness includes Australia’s high life expectancy rankings internationally and reduced mortality rates from treatable conditions. However, significant gaps exist in mental health and dental care funding, creating ongoing health inequities despite substantial investment.

Targeted Funding for Disadvantaged Groups

Indigenous health funding demonstrates substantial progress through programs like Close the Gap, which specifically address health inequities experienced by Aboriginal and Torres Strait Islander peoples. Dedicated funding for Aboriginal Community Controlled Health Services provides culturally appropriate care and shows measurable improvements in immunisation rates and chronic disease management. Aged care funding through programs like My Aged Care enables elderly Australians to remain in their homes longer, reducing hospital admission rates and improving quality of life.
Disability support funding via the NDIS produces significant outcomes by providing individualised support packages that address both health and social determinants. This targeted approach demonstrates how funding allocation based on specific population needs creates sustainable health improvements rather than generic solutions.

Prevention and Health Promotion Principles

Preventative funding aligns with effective health promotion principles by addressing multiple determinants of health simultaneously. Immunisation programs exemplify the Ottawa Charter principle of developing personal skills while creating supportive environments through school-based delivery. Cancer screening funding demonstrates the principle of reorienting health services from treatment to prevention, resulting in earlier detection and improved survival rates.
Tobacco control funding successfully applies multiple health promotion strategies including policy development through taxation, community action through quit campaigns, and creating supportive environments in workplaces. This comprehensive approach produces measurable population health improvements with smoking rates declining from 24% to 11% over two decades.

Overall Assessment

Assessment reveals highly effective outcomes when funding addresses specific population needs and applies evidence-based health promotion principles. The greatest success occurs where funding combines universal access with targeted support for disadvantaged groups, demonstrating optimal resource allocation strategies.

♦♦♦ Mean mark 44%.

HMS, HAG 2017 HSC 14 MC

How does Medicare reflect the principles of social justice?

It provides resources only to those most in need of health services and treatment.
It is funded by the Australian government to supply equality in health care services to all Australians.
It allocates resources according to the needs of the population in order to promote equity of health outcomes.
It empowers individuals and communities to be involved in planning and decision making to achieve good health.

Show Answers Only

$B$

Show Worked Solution

B is correct: Medicare is government-funded to provide equal healthcare access to all Australians.

Other Options:

A is incorrect: Medicare provides universal access, not just for those most in need.
C is incorrect: Medicare provides equal access rather than resource allocation based on need.
D is incorrect: Medicare is a funding system, not a community empowerment program.

HMS, HAG 2017 HSC 2 MC

Who is responsible for funding the Pharmaceutical Benefits Scheme (PBS)?

State government
Local government
Federal government
Private health insurance

Show Answers Only

$C$

Show Worked Solution

C is correct: PBS is a Commonwealth-funded program administered by the federal government.

Other Options:

A is incorrect: State governments fund public hospitals, not pharmaceutical benefits.
B is incorrect: Local governments manage environmental health, not pharmaceutical schemes.
D is incorrect: Private health insurance is separate from government pharmaceutical benefits.

HMS, HAG 2018 HSC 19 MC

The graph shows (government) expenditure for patients admitted to hospital in Australia, by age, for 2012–2013.

Which of the following is most likely to be responsible for admitted patient expenditures over $2500 million?

Mental health and injuries
Mental health and respiratory diseases
Cardiovascular diseases and injuries
Cardiovascular diseases and respiratory diseases

Show Answers Only

$C$

Show Worked Solution

C is correct: Cardiovascular diseases and injuries require expensive treatments and affect older age groups with highest expenditure.

Other Options:

A is incorrect: Mental health typically requires less expensive hospital treatment than cardiovascular diseases.
B is incorrect: Mental health expenditure is generally lower than cardiovascular disease costs.
D is incorrect: Respiratory diseases are less expensive to treat than injuries requiring surgery.

♦♦♦♦♦ Mean mark 36%.

HMS, HAG 2018 HSC 10 MC

Which of the following best describes Medicare?

It is funded by taxpayers and covers the cost of ambulance services.
It is funded by private contributions and covers the cost of physiotherapy.
It is funded by insurance premiums and covers the cost of private hospitals.
It is funded by a levy and subsidises the cost of visits to general practitioners.

Show Answers Only

$D$

Show Worked Solution

D is correct: Medicare is funded by a levy and subsidises GP visits through bulk billing.

Other Options:

A is incorrect: Ambulance services are typically state-funded, not covered by Medicare.
B is incorrect: Medicare is government-funded through levy, not private contributions.
C is incorrect: Private health insurance covers private hospitals, not Medicare.

HMS, HAG 2019 HSC 9 MC

Which type of health care service has the highest expenditure by state/territory governments in Australia?

Dental services
Public hospitals
Palliative care hospitals
Pharmaceutical services

Show Answers Only

$B$

Show Worked Solution

B is correct: Public hospitals receive the largest portion of state/territory health expenditure.

Other Options:

A is incorrect: Dental services receive much smaller state government funding.
C is incorrect: Palliative care represents a small portion of hospital expenditure.
D is incorrect: Pharmaceutical services are primarily federally funded through PBS.

HMS, HAG 2021 HSC 8 MC

What could be an advantage for an individual who has private health insurance

The Medicare Safety Net is decreased.
The Medicare Levy Surcharge needs to be paid.
The cost of some ancillary health services is reduced.
The recovery time after elective surgery in a private hospital is decreased.

Show Answers Only

$C$

Show Worked Solution

C is correct: Private insurance reduces costs for ancillary services such as dental and optical services.

Other Options:

A is incorrect: Safety Net provides additional benefits not reductions.
B is incorrect: Surcharge avoided with adequate private cover.
D is incorrect: Recovery time depends on individual not insurance.

HMS, HAG 2022 HSC 25

Organisations suggest that governments should increase the funding for early intervention and prevention strategies for cancer.

Analyse the effects this increased funding would have on Australia's future health care expenditure. Provide examples to support your answer. (8 marks)

--- 26 WORK AREA LINES (style=lined) ---

Show Answers Only

Overview Statement

Increased funding for cancer prevention and early intervention would create significant long-term reductions in Australia’s healthcare expenditure. Prevention strategies reduce treatment demands through cost-effective early action programs.

Component Relationship 1: Prevention Programs and Cost Savings

Enhanced funding for cancer prevention programs enables expanded screening services and campaigns like ‘SunSmart’ targeting skin cancer prevention. Early detection through BreastScreen Australia’s biennial mammograms reduces expensive late-stage treatments requiring surgery, chemotherapy, and radiation therapy. Advanced breast cancer treatment involves months of hospital admissions and specialist oncology care. Prevention investment demonstrates how early intervention funding leads to substantial cost savings. Early-stage cancer treatment costs considerably less than advanced cancer management requiring ongoing palliative care. Early detection results in patients gaining additional years with five-year survival rates exceeding 90%.

Component Relationship 2: Health System Capacity and Resource Allocation

Increased prevention funding shifts healthcare resources from reactive treatment to proactive intervention. Resource reallocation creates reduced demand on hospital emergency departments and specialist oncology services. Enhanced bowel cancer screening programs identify cancers before symptoms appear, resulting in shorter hospital stays and outpatient procedures. Prevention investment demonstrates how healthcare spending redistributes more efficiently whilst improving survival rates.

Implications and Synthesis

Prevention funding operates as cost-effective investment strategy with measurable returns over decades. Strategic investment prevents expensive treatment sequences whilst improving population health outcomes. Healthcare expenditure transforms from costly crisis management to sustainable health maintenance through targeted prevention funding.

Show Worked Solution

Overview Statement

Increased funding for cancer prevention and early intervention would create significant long-term reductions in Australia’s healthcare expenditure. Prevention strategies reduce treatment demands through cost-effective early action programs.

Component Relationship 1: Prevention Programs and Cost Savings

Enhanced funding for cancer prevention programs enables expanded screening services and campaigns like ‘SunSmart’ targeting skin cancer prevention. Early detection through BreastScreen Australia’s biennial mammograms reduces expensive late-stage treatments requiring surgery, chemotherapy, and radiation therapy. Advanced breast cancer treatment involves months of hospital admissions and specialist oncology care. Prevention investment demonstrates how early intervention funding leads to substantial cost savings. Early-stage cancer treatment costs considerably less than advanced cancer management requiring ongoing palliative care. Early detection results in patients gaining additional years with five-year survival rates exceeding 90%.

Component Relationship 2: Health System Capacity and Resource Allocation

Increased prevention funding shifts healthcare resources from reactive treatment to proactive intervention. Resource reallocation creates reduced demand on hospital emergency departments and specialist oncology services. Enhanced bowel cancer screening programs identify cancers before symptoms appear, resulting in shorter hospital stays and outpatient procedures. Prevention investment demonstrates how healthcare spending redistributes more efficiently whilst improving survival rates.

Implications and Synthesis

Prevention funding operates as cost-effective investment strategy with measurable returns over decades. Strategic investment prevents expensive treatment sequences whilst improving population health outcomes. Healthcare expenditure transforms from costly crisis management to sustainable health maintenance through targeted prevention funding.

♦♦ Mean mark 47%.

HMS, HAG 2023 HSC 32b

Evaluate how effectively funding has been used to solve health inequities in Australia. (12 marks)

--- 30 WORK AREA LINES (style=lined) ---

Show Answers Only

Evaluation Statement

Funding has been moderately effective in addressing health inequities in Australia. Universal programs demonstrate strong effectiveness while targeted initiatives show limited success due to structural barriers.

Universal Healthcare Funding

Medicare funding demonstrates strong effectiveness in reducing financial barriers to healthcare access. Universal coverage ensures all Australians receive essential medical services regardless of socioeconomic status, with bulk-billing providing free GP consultations. Evidence supporting this includes significantly improved health outcomes since Medicare’s introduction and reduced medical bankruptcies compared to countries without universal systems. However, Medicare shows limitations in addressing geographical inequities, with less than 5% of specialists practising in rural areas despite nearly 30% of Australians living there. This criterion reveals that while Medicare effectively addresses financial barriers, it inadequately tackles structural service distribution problems.

Targeted Indigenous Health Funding

Funding for Aboriginal and Torres Strait Islander health shows limited effectiveness despite substantial investment through Closing the Gap initiatives. Programs have achieved modest improvements including increased childhood immunisation rates and reduced infant mortality in some communities. However, the persistent 8-year life expectancy gap demonstrates significant limitations in current funding approaches. Evidence indicates that funding alone cannot address complex cultural, social and historical determinants without integrated community-led approaches. This criterion shows funding partially meets health service targets but fails to achieve comprehensive equity outcomes.

Final Evaluation

Weighing these factors shows funding has achieved moderate effectiveness in solving health inequities. While universal programs prove highly successful for financial access, targeted approaches require fundamental redesign to address systemic inequalities effectively.

Show Worked Solution

Evaluation Statement

Funding has been moderately effective in addressing health inequities in Australia. Universal programs demonstrate strong effectiveness while targeted initiatives show limited success due to structural barriers.

Universal Healthcare Funding

Medicare funding demonstrates strong effectiveness in reducing financial barriers to healthcare access. Universal coverage ensures all Australians receive essential medical services regardless of socioeconomic status, with bulk-billing providing free GP consultations. Evidence supporting this includes significantly improved health outcomes since Medicare’s introduction and reduced medical bankruptcies compared to countries without universal systems. However, Medicare shows limitations in addressing geographical inequities, with less than 5% of specialists practising in rural areas despite nearly 30% of Australians living there. This criterion reveals that while Medicare effectively addresses financial barriers, it inadequately tackles structural service distribution problems.

Targeted Indigenous Health Funding

Funding for Aboriginal and Torres Strait Islander health shows limited effectiveness despite substantial investment through Closing the Gap initiatives. Programs have achieved modest improvements including increased childhood immunisation rates and reduced infant mortality in some communities. However, the persistent 8-year life expectancy gap demonstrates significant limitations in current funding approaches. Evidence indicates that funding alone cannot address complex cultural, social and historical determinants without integrated community-led approaches. This criterion shows funding partially meets health service targets but fails to achieve comprehensive equity outcomes.

Final Evaluation

Weighing these factors shows funding has achieved moderate effectiveness in solving health inequities. While universal programs prove highly successful for financial access, targeted approaches require fundamental redesign to address systemic inequalities effectively.

♦♦ Mean mark 44%.

HMS, HAG 2023 HSC 10 MC

Which of the following incentives was introduced by the Australian Government to encourage individuals to take out private health insurance?

Entitlement to a mental health treatment plan
Guaranteed 50% rebate on all ancillary services
Free admission for treatment in private hospitals
Exemption from paying the Medicare levy surcharge

Show Answers Only

$D$

Show Worked Solution

D is correct: Medicare levy surcharge exemption introduced as a financial incentive to encourage private health insurance uptake.

Other Options:

A is incorrect: Mental health treatment plans are available through Medicare, not linked to private insurance.
B is incorrect: No guarantee of 50% rebate on all ancillary services exists.
C is incorrect: Private hospitals still charge for admission despite insurance.

♦♦ Mean mark 45%.

HMS, HAG 2024 HSC 11 MC

Why do private health insurance providers apply waiting periods for certain procedures and services?

To ensure the policy is suitable for the policyholder
To assess the policyholder's capacity to pay premiums
To maximise eligibility of government rebates for consumers
To prevent immediate claims for pre-existing medical conditions

Show Answers Only

$D$

Show Worked Solution

D is correct: Waiting periods implemented primarily to prevent people from joining only when they need treatment for pre-existing conditions.

Other Options:

A is incorrect: Suitability is determined by policy features, not waiting periods.
B is incorrect: This is determined during application, not waiting periods.
C is incorrect: Rebates aren’t affected by waiting periods.

♦♦ Mean mark 40%.

HMS, HAG EQ-Bank 3 MC

A pensioner visits their local pharmacy to collect their regular blood pressure medication. They are able to purchase their prescription medications at a significantly reduced cost compared to the general public.

Which of the following enables this person to access cheaper prescription medications?

Medicare Safety Net
Hospital cover
Health care concession card
Private health insurance

Show Answers Only

$C$

Show Worked Solution

C is correct: Health care concession cards provide reduced PBS medication costs for pensioners.

Other Options:

A is incorrect: Medicare Safety Net operates on annual thresholds not individual prescriptions.
B is incorrect: Hospital cover relates to private hospital treatment not medications.
D is incorrect: Private health insurance doesn’t reduce PBS prescription costs.

HMS, HAG EQ-Bank 2 MC

A 19-year-old person with a permanent physical disability received funding for mobility equipment, home modifications, and regular physiotherapy sessions. They were able to choose their own service providers and had control over how their support funding was managed.

Which of the following schemes provided this person-centred support?

Medicare Benefits Schedule
National Disability Insurance Scheme
Private health insurance
Community health services

Show Answers Only

$B$

Show Worked Solution

B is correct: NDIS provides person-centred disability support with participant choice and control.

Other Options:

A is incorrect: Medicare covers medical services not disability equipment/modifications.
C is incorrect: Private insurance doesn’t provide comprehensive disability support funding.
D is incorrect: Community services don’t provide individual funding control mechanisms.

HMS, HAG EQ-Bank 1 MC

A low-income family had multiple medical appointments with specialists over a three-month period, resulting in high out-of-pocket expenses. After reaching a certain threshold, their out-of-pocket medical costs were significantly reduced for the remainder of the calendar year.

Which of the following enabled this reduction in medical costs?

Medicare Safety Net
Private health insurance
Health care concession card
Bulk billing incentive

Show Answers Only

$A$

Show Worked Solution

A is correct: Medicare Safety Net reduces costs after reaching annual threshold.

Other Options:

B is incorrect: Private insurance doesn’t use annual threshold system.
C is incorrect: Concession cards provide discounts not threshold-based reductions.
D is incorrect: Bulk billing eliminates gaps not threshold-based cost reduction.