The government has announced funding of $65 million from January 1, 2022 to boost bulk-billing rebates, in a plan aimed at providing more affordable healthcare for patients in regional, rural and remote areas.

A new progressive incentive schedule will be applied, increasing the value of the Rural Bulk Billing Incentive based on remoteness.

As it is, the bulk billing rebates for rural areas are assessed under the Modified Monash Model. The model measures remoteness on scale of a big city (MM1) to a very remote area (MM7).

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At the moment, bulk-billing doctors outside metropolitan areas receive 150 per cent of the base bulk-billing index across the board (MM2-7).

However, under the new changes, the bulk-billing index will range from 160 per cent of the base rate for MM3-4, to 190 per cent for MM7, with MM2 to remain at 150.

"The new Rural Bulk Billing Incentive will support those GPs providing services to people in greatest need and who have the lowest propensity to pay for healthcare; our government understands GPs outside of our metropolitan areas face greater cost and workforce pressures," federal Regional Health Minister Mark Coulton said.

Under the existing model, areas like Launceston and Hagley are classified as MM2 - which has been a source of frustration for GPs.

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Dr Jerome Muir Wilson, GP and director at the Launceston Health Hub, said while the intent of the announcement was great, the potential funding for doctors may not be enough.

"It's great to see the intent of improving access for patients to rural doctors," he said.

"With many barriers including the costs of recruiting and running a rural practice I'm not optimistic that a $0.60 to $2.25 increase in the bulk billing rates will attract more doctors."

According to Dr Muir Wilson, Medicare incentives for a doctor working in Sandy Bay for a standard bulk-billed consult would attract $48.40.

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Under the proposed changes, a doctor on King Island would attract $51.10. The marginal increase was unlikely to sustainably help a rural GP improve their financial viability.

"If we look at the mining industry they pay all their workers often huge pay loading a along with other costs such as travel, accommodation," Dr Muir Wilson said.

"Let's hope this is the start of a further comprehensive package to give those patients and practitioners living in rural Australia a chance at accessing quality health care."

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Launceston GP Don Rose echoed the thoughts, labelling the announcement as a step in the right direction, but with a "long way to go".

"It will mean that the rural towns will get a few dollars, but that is all it is a few dollars, but big regional areas like ours that service rural areas won't [see] any difference," he said.

"It's not going to benefit the majority of practices in Tasmania because of the misclassification we have."

Rural Doctors Association of Australia president Dr John Hall labelled the announcement a "game changer" for rural communities.

"For the first time in Medicare we are seeing government recognise that there are on-the-ground differences between delivering general practice care in regional; rural; and remote areas, compared to larger regional and metropolitan cities," he said.

"We feel the scaling of this bulk-billing initiative is well-considered, with large regional centres continuing to receive an additional payment over metropolitan practices, but the new, scaled payment arrangements, recognising the additional complexity and costs in delivering general practice care into increasingly remote areas."

Dr Rose was hopeful that GPs would receive greater benefit from the upcoming federal budget.

"You could label [the announcement] a start but there's still a long, long way to go," he said

"Hopefully the upcoming budget will try and assist general practices because nothing [the federal government] has done so far has."

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