Editing Medicare (Australia) (section)

===Medibank Mark II (1976–1981)===
After a change of government at the [[Australian federal election, 1975|December 1975 election]], the [[Fraser government]] established the Medibank Review Committee in January 1976. This led to legislative changes, and the launch of 'Medibank Mark II' on 1 October 1976. It included a 2.5% income levy, with taxpayers having an option of instead taking out private health insurance. Other changes included reducing rebates to doctors and hospitals.<ref name="Biggs APH brief"/> Over the following years, universal free hospital access ceased in almost all hospitals, with only the poor receiving free access.<ref name=":1" />

Also that year, the Fraser government passed the [[Medibank Private]] bill, which allowed the HIC to enter the private health insurance business. It was to become the dominant player in that market.

In 1978, [[bulk billing]] was restricted to pensioners and the socially disadvantaged. Rebates were reduced to 75% of the schedule fee. The health insurance levy was also scrapped that year. The next year, Medibank rebates were cut further. In 1981, access to Medibank was restricted further, and an income tax rebate was introduced for holders of private health insurance to encourage its uptake. Finally, the original Medibank was dissolved entirely in late 1981, leaving behind Medibank Private as a government-operated private health insurer.