ACT Residents Bear Brunt of Healthcare Cost Crisis, New Data Reveals
Canberra residents are facing the nation's most severe healthcare affordability challenges, with new Productivity Commission data showing they are more likely than any other Australians to delay or avoid seeing a doctor or purchasing essential medications due to financial constraints.
While national trends indicate improving healthcare accessibility with declining avoidance rates and increasing bulk billing, the Australian Capital Territory is moving in the opposite direction, creating what locals describe as a "Canberra tax" on health services.
The Stark Reality of Healthcare Avoidance
During the 2024-25 financial year, 8.9 percent of surveyed ACT residents reported avoiding or delaying medication purchases due to cost, significantly higher than the national average of 7.5 percent. Even more concerning, over 11 percent of Canberrans delayed or avoided GP visits, compared to just 7.7 percent nationally.
The territory recorded Australia's lowest bulk billing rate at only 53.9 percent of appointments, dramatically below the national average of nearly 80 percent. ACT patients paid an average of $57 out-of-pocket for GP visits, with only Tasmania recording higher costs.
"We've definitely seen patients that for one reason or another have had to forego taking medication because of the cost," said Ben Stevenson, pharmacist at Capital Chemist, University of Canberra. "With cost of living going up across the board, patients are choosing between groceries or medication."
The Canberra Tax: A Perfect Storm of Expenses
Mr Stevenson explained that while medication prices remain consistent across Australia, the so-called "Canberra tax" – the territory's exceptionally high living costs – leaves residents with less disposable income for healthcare.
"In the ACT, I think people are being hit by cost of living perhaps harder than elsewhere," he noted. "We've got very high rents, very high housing, even things like your fresh produce at the markets and so on costs more in Canberra. When everything else costs more, that leaves patients with that tough choice and sometimes that means that they'll choose not to take medication that they need."
The situation extends beyond general practice to specialist care, where the ACT's bulk billing rate for specialist appointments sits at just 24.7 percent, equal lowest with Tasmania. Patients pay an average of $150 out-of-pocket for specialist visits, $24 above the national average and the highest of any state or territory.
Access Barriers and Systemic Challenges
Compounding the financial burden, bureaucratic hurdles prevent many vulnerable patients from accessing subsidised medications through the Pharmaceutical Benefits Scheme (PBS).
"A lot of the newer medications have very specific hoops that patients have to jump through," Mr Stevenson explained. "A lot of the time it's our most vulnerable patients and the patients that are struggling the most that find difficulty in meeting either the exact criteria or getting the paperwork required."
Canberra's GP shortage exacerbates the problem, with only 89.3 general practitioners per 100,000 people in 2024 – fewer than major cities and inner regional areas in any other state or territory.
Real-World Consequences for Canberrans
The healthcare affordability crisis has tangible impacts on residents' health management strategies. Gungahlin resident Areen described driving to Belconnen to access a bulk-billing GP, requiring half a day off work for medical appointments.
"It means that sometimes I decide not see a GP," she admitted, adding that she frequently finds herself "jumping from one GP to another" as bulk-billing doctors transition to mixed billing or relocate outside Canberra.
Mr Stevenson warned of serious health consequences when patients cannot access regular medical care. "If they're not seeing doctors regularly, things can get missed, health conditions can go undiagnosed, problems that could be fixed cheaply with a single medication now can escalate," he cautioned. "Diabetes can go undiagnosed and it can lead to chronic health, it can lead to loss of mobility and disability. The same thing goes for cardiovascular medications."
Pharmacy Efforts to Mitigate Costs
Despite rising ingredient costs for compound medications, pharmacies across Australia are attempting to absorb expenses where possible. "A lot of pharmacies around Australia are trying to swallow that cost for patients as much as we can," Mr Stevenson said. "We'll get a 10 percent cost increase from our suppliers and we'll pass on a 5 percent cost increase. I don't think there's a single pharmacy franchise that isn't trying to do something like that to help."
The data reveals some positive developments, with one in four ACT patients now fully bulk billed – an increase of 1.4 percentage points from the previous financial year. However, this improvement remains insufficient to address the territory's systemic healthcare affordability challenges.
As telehealth services and after-hours medical services like the Canberra After Hours Locum Medical Service become substitutes for regular GP relationships, the fundamental issue of healthcare accessibility and affordability continues to disproportionately affect ACT residents, creating what appears to be a uniquely Canberra healthcare crisis within the national landscape.
