Medicare co-payment axed: Ley

The federal government has scrapped its unpopular plan for a GP co-payment, Health Minister Sussan Ley has confirmed.

"It is clear the proposal for a co-payment and associated $5 cut to the rebate do not have broad support and will not proceed," Ms Ley told reporters in Canberra.

"We recognise that we cannot introduce reforms to build a strong, sustainable Medicare without the support from the public and the parliament."

Ms Ley said her consultations with medical professionals and the public over the past six weeks convinced her the co-payment plan could not proceed.

But she says the government is still committed to protecting Medicare for the long-term.

She will continue to consult on short, medium and long-term policy options.

"We haven't arrived at a final position but I am well and truly framed by the economic considerations," she said.

"We will never walk away from that economic responsibility."

Ms Ley says she remains 100 per cent committed to the government's plan for a medical research future fund.

Federal cabinet signed off on the decision to dump the co-payment on Monday. The decision was taken to the coalition party room earlier on Tuesday.