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14.79 This item includes all personal outlays on health products and services. The Medicare levy is considered to be a direct tax on income and is not part of HFCE. The net amount actually paid by households for Medicare-covered services is included. Refunds obtained by households from Medicare are considered to be part of government final consumption expenditure and hence are not included in HFCE. Refunds from health insurance funds are not deducted in calculating these items, but they are offset against the premiums that health insurance funds charge in calculating the insurance service charge that households pay for medical insurance - see Insurance (12.3).
06.1 Medicines, medical aids and therapeutic appliances
14.80 Includes purchases of medicines (both prescription and non-prescription), medical aids and therapeutic appliances (including spectacles and hearing aids) by resident households. Pharmaceutical benefits paid by governments to subsidise the cost of prescribed medicines are included in Government final consumption expenditure.
Sources and methods
14.81 Data from the Retail Census are used as benchmarks and monthly industry data from the survey of Retail Trade as quarterly indicators. For years when census data are not available, annual estimates are derived by summing the quarterly estimates.
14.82. Current price estimates of purchases of medicines, medical aids and therapeutic appliances in Australia are revalued using the relevant components of the CPI.
06.2 Ambulatory health care
14.83 This component comprises outlays by resident households on ambulatory health care provided by medical practitioners, dentists, opticians, physiotherapists, podiatrists, acupuncturists, clinical psychologists and similar paramedical practitioners.
Sources and methods
14.84 Estimates are obtained using information provided by the Commonwealth Department of Health and Aged Care about fees charged by medical practitioners and other health professionals for services attracting a Medicare benefit. Data from the Australian Institute of Health and Welfare and the Australian Taxation Office are used to compile estimates for those services which do not attract a Medicare benefit.
14.85 Current price estimates of purchases of ambulatory health care in Australia are revalued using the relevant components of the CPI.
06.3 Hospital, ambulance services and nursing home care
14.86 This component comprises outlays by resident households on in-patient and out-patient health care provided by public and commercial hospitals and nursing homes; and current expenditure by non-profit organisations providing health care. (Hostel accommodation services for the aged or disabled are included in HFCE on Accommodation services (11.2).)
Sources and methods
Outlays by resident households on in-patient and out-patient health care
14.88 Quarterly information about health insurance benefits payable to households for care in hospitals is available from the Private Health Insurance Administration Council. These details provide an indicator for estimating fees paid by households to all types of hospitals. This total may then be split into public and commercial hospitals on the one hand, and private non-profit hospitals on the other. In addition to this, similar quarterly information is received about public hospitals and nursing homes from the State and Territory Health Departments. Quarterly information about transfers from general government (weekly nursing home benefits, and grants to fund operating deficits) is available from the ABS Public Finance Section.
14.90 This element covers three subcategories: ambulance services, non-profit hospitals and nursing homes, and other non-profit health care institutions.
14.91 Current price estimates of purchases of hospital and ambulance services and nursing home care in Australia are revalued using the relevant components of the CPI.
Total: 06 Health
14.92 Current price estimates of purchases of health services by Australian residents overseas are revalued using a composite index of overseas CPIs.