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Health Minister Mark Butler has defended the decision to halve the number of Medicare-subsidised psychology appointments.
From next year, patients will only be able to claim 10 subsidised appointments, following a review of the scheme.
Ten additional sessions were funded in the wake of the initial COVID-19 lockdowns, bringing the total number of appointments to 20, but the extra funding will not be renewed next year.
Mr Butler said the halving of appointment numbers was to make the scheme more accessible to people.
"This is a good program, I've been familiar with it for many, many years, but its problem has always been one of equity," he told ABC Radio on Wednesday.
"The evaluation found that the lowest-income communities have more than twice the levels of mental distress as the highest-income communities, but they get the lowest level of support and, under this program, that inequality was substantially worsened by these additional 10 sessions."
According to the review, the number of new patients able to access subsidised appointments when the additional sessions were in place declined by seven per cent.
The health minister said the halving of subsidised appointments was due to the program being demand driven.
"Every person who goes to their GP and has a mental health plan is entitled to 10 sessions," Mr Butler said.
"What I hope is this will open up opportunities for people who are getting no support whatsoever to get that support."
Talks are set to take place next year with stakeholders on how the scheme could be made more accessible to patients.
The impact of COVID-19 has led to spikes in mental distress among Australians, with Mr Butler saying young Australians have been more affected.
"The mental health impacts of these traumas on our community can last for years, they don't switch off at the time that the flood recedes or the bushfire ends," he said.
"Fewer people are getting in the door, that's having the most dramatic impact evaluation found on poor communities and rural communities."
Patients who are already in the middle of the additional 10 sessions will still be able to access them over coming months.
