Bulk billing cuts to save $650m in federal budget

BULK billing incentives will be stripped from pathology services and cut for diagnostic imaging services, in a Turnbull government move to save $650 million.

Announced on Monday by Treasurer Scott Morrison in his budget update, the savings were among almost $1.2 billion in cuts across federal government health services.

From July next year the government will cut bulk billing for magnetic resonance imaging (MRIs) to 10% of the Medicare Benefits Schedule fee, down from 15%.

Also, $472 million will be saved by changing the calculations for aged care providers' funding, and $61 million raised through an aged care compliance crackdown.

A further $595 million will be cut from health workforce programs, with $252 to be re-directed to rural health programs.