Reducing out-of-pocket costs for Australian healthcare consumers
REPORT

Reducing out-of-pocket costs for Australian healthcare consumers

clock

27.03.2025 - 06:59

Health

In partnership with Private Healthcare Australia (PHA), our latest report reveals the increasing strain of out-of-pocket healthcare costs on Australian consumers. Without urgent action, these costs could reach $1.6 billion by 2030, driven by limited competition, lack of price transparency, and weak consumer protections. Costs have already surged 12% in the past year, and 330,000 Australians are expected to delay care due to affordability concerns. Transparent pricing and stronger protections could save consumers millions. Read our full analysis to understand the challenges—and the solutions—that could make healthcare more accessible for all.

The rising cost of healthcare: what it means for consumers

The cost-of-living crisis is placing immense financial strain on Australians, and healthcare expenses are no exception. Our latest report explores the sharp rise in out-of-pocket medical costs and the challenges consumers face in accessing affordable care. Without meaningful reform, Australians could find themselves paying a staggering $1.6 billion in out-of-pocket expenses by 2030.

The cost-of-living crisis is hitting consumers hard, especially when managing their healthcare

Australian households are under increasing financial pressure, with inflation driving up the cost of essential goods and services—including healthcare. Out-of-pocket healthcare costs now exceed $8 billion annually, making it harder for consumers to access the care they need. One in five Australians is delaying or avoiding medical treatment due to cost concerns, highlighting the growing affordability challenge. Without action, rising costs will continue to limit access to essential healthcare, particularly for low- and middle-income households.

Without change, consumers could find themselves paying $1.6B in out-of-pocket costs by 2030

Our latest report, in partnership with Private Healthcare Australia (PHA), reveals that without reform, Australians could be paying an additional $1.6 billion in out-of-pocket healthcare costs each year by 2030. This would push total consumer healthcare contributions to nearly $10 billion annually, adding further strain to household budgets. The impact is particularly severe for those requiring specialist care, with out-of-pocket costs for procedures such as cataract surgery and knee replacements exceeding $2,000 per patient in some cases.

Out-of-pocket cost growth is driven by a lack of competition, price transparency and consumer protections as well as inflation

A range of systemic issues is driving the rise in healthcare costs:

  • Limited competition among providers is keeping prices high, with patients in Australia paying up to 50% more for procedures compared to other OECD countries.
  • A lack of price transparency makes it difficult for consumers to compare costs, leading to unexpected bills and financial stress.
  • Weak consumer protections expose Australians to excessive fees, particularly in specialist care, where pricing varies significantly.
  • Inflationary pressures have worsened the situation, with medical services inflation outpacing overall inflation in recent years.

Without meaningful reform, private healthcare will become increasingly unaffordable for many Australians. Addressing these challenges through greater competition, improved transparency, and stronger consumer protections is critical to ensuring affordable and accessible healthcare for all.

Read the full report here.

Read our latest posts

The Stagnant Nation: Lifting Australia’s Dynamism
Productivity

The Stagnant Nation: Lifting Australia’s Dynamism

Australians are going backwards on real wages and income. Real wage growth has fallen from 0.6 per cent in the 2000s to -0.7 per cent today, the slowest rate since the 1990s recession. Weak productivity growth is a key driver. Productivity growth has dropped from 2.2 per cent in the 1990s to just 0.1 per cent today. The Productivity Commission has pointed to declining economic dynamism as one cause for weak growth, with fewer businesses starting, growing and competing. We confirm declining economic dynamism across five key dimensions and estimate that reversing this decline seen since the mid-2000s could see a GDP uplift of $101 billion per year over the next decade. Our analysis finds that regulation could account for around 20 per cent of declining dynamism. Reducing regulatory burden to late-2000s levels could see GDP uplift of at least $20 billion per year over the next ten years.

7 Oct, 2026

Demonstrating the economic benefits of Airwallex in Australia
EconomicsFinTechTechnology

Demonstrating the economic benefits of Airwallex in Australia

Mandala's latest research, commissioned by Airwallex, quantifies the direct and indirect economic benefits of Airwallex in Australia. Airwallex supported $4.6 billion in economic benefits in 2025, a figure roughly equivalent to 2 per cent of the Australian tech sector's contribution to GDP. Of this, $2.5 billion flows directly to platform businesses through productivity gains, new market access and cost savings, with the remainder reaching the broader economy as those benefits move through customers' supply chains. Airwallex supports 29,000 jobs across the Australian economy, and a quarter of economic benefits flow to regional, rural and remote areas. Small and medium businesses capture the largest share of any business segment on the platform, $2.1 billion annually, or $200,000 in economic benefits for the average SMB each year.

16 Sep, 2026

Power to the people
United KingdomGovernmentDevolution

Power to the people

Mandala’s latest research examines how Greater Manchester turned devolved power into economic growth, why it worked, and what it could mean if similar powers were extended across England. Since devolution began in 2009, Greater Manchester’s economy has grown by nearly 45%, outperforming both the rest of England and the UK as a whole. Greater control over funding and policy has enabled the Mayor and Greater Manchester Combined Authority (GMCA) to coordinate investment in transport, housing, skills and economic development around local priorities. This has supported a 41% increase in bus journeys, recycled £300m of government capital into around £1bn of housing investment, delivering 11,000 dwellings, and increased employment in key sectors by over a quarter, compared with 14% across England. Integrating health and social care has also improved life expectancy, with the largest gains in self-reported health in the least healthy neighbourhoods. If local and combined authorities in England had these powers and replicated Manchester, we estimate an annual boost to the economy of up to £80bn, over 93,000 new homes, and £3.1bn in additional economic activity from improved life expectancy.

7 Sep, 2026

The Hidden Economy: Addressing Australia’s  Domestic Work and Care Divide
EconomicsAITechnologyGovernment

The Hidden Economy: Addressing Australia’s Domestic Work and Care Divide

Mandala’s research, in partnership with DoorDash Australia, examines the scale and distribution of Australia's unpaid household labour, the real costs it imposes on individuals and the economy, and the role that emerging technologies and policy reform could play in reducing and more equitably sharing that burden.

6 Sep, 2026

Loading...