Medicare costing $250 more under Labor Government There is speculation the Labor Government will increase the Medicare levy by 2 per cent in the May budget. THE average Medicare levy has grown by nearly $250 to $1120 under Labor - and much faster than during the Coalition's reign. Amid speculation the levy will be increased to 2 per cent, the Australian Taxation Office published new statistics yesterday showing 8.66 million people were charged a combined $8.47 billion for Medicare - an average of $978 - in 2010-11. Treasury has estimated the Medicare levy will reap $9.7 billion this financial year, pushing the average contribution to $1120. This assumes the number paying the levy remains steady - it has risen and fallen slightly in previous years. In 2007-08 - the financial year Kevin Rudd won government - the average was $872. That means the average Medicare levy has increased by $248 since Labor came to power five and a half years ago. Under the 11 years of the previous Coalition government, the average rose by $360 - just 45 per cent more for double the length of time. Treasury forecasts the Medicare levy will raise $10.4 billion next financial year - $700 million more than 2012-13. It upgraded its estimate by $150 million in November 2012. Data from the Government's Australian Institute of Health and Welfare (AIHW) shows out-of-pocket expenses have increased considerably under Labor.In 2007-08, payments by individuals accounted for 16.8 per cent of all health expenditure. In 2010-11 - the latest available figures - the figure was 18.3 per cent, higher than at any time under John Howard, according to AIHW figures. Under Labor, health costs have risen 31 per cent, according to the Australian Bureau of Statistics, while medical and hospital services have become 41 per cent more expensive. In the preceding 11 and a half years of Coalition rule, health costs rose 50 per cent. Medical and hospital services became 57 per cent more expensive. And while private health premiums have been rising at twice the pace of inflation recently, the office of Health Minister Tanya Plibersek said: "This year's average increase of 5.6 per cent remained well below rises when Tony Abbott was minister for health, which peaked at 7.96 per cent and averaged 6.44 per cent." However, it was Labor that removed the private health insurance rebate for more than two million Australians last year. Ms Plibersek's spokesman said bulk-billing rates for GP services were at an equal record high, with 82 per cent of consultations free in the final three months of 2012. "This is in stark contrast to when Tony Abbott was health minister when bulk billing rates hit rock bottom at just 67 per cent," Ms Plibersek's spokesman said. The government is considering raising the medicare levy to pay for the NDIS.