Medicare services lag in last century:Ley

The Turnbull government says a review of Medicare services is "long overdue" but Labor believes it is a "ham-fisted" attempt at health cuts.

Health Minister Sussan Ley says the Medicare system needs to brought into the 21st century, noting that 70 per cent of about 5700 items on the Medicare Benefits Schedule have not changed since 1984.

"The current system is lagging in the last century," Ms Ley said in statement on Sunday.

Only three per cent of listed items have been assessed or tested to see whether they actually work, are out-of-date or even harmful, she said.

She wants to hear from health professionals and patients about any services, tests or procedures they have come across in the Medicare system that are unnecessary or unsafe.

Such services cost the nation dearly, she said, with Medicare claims now hitting one million per day.

Australian Medical Association president Brian Owler agrees the MBS is outdated but is offended by the suggestion some doctors may be using it to perform unsafe and unnecessary procedures, harming patients for financial gain.

"It's an approach that undermines the confidence that patients have in their doctors - it's unacceptable," he told reporters in Sydney.

Labor health spokeswoman Catherine King says the government is like a "bull in a china shop" when it comes to health and there is no guarantee any savings would be reinvested in the sector.

"When the Liberal party says it is going to review something, you can guarantee what that mean is they are going to cut," she told reporters in Melbourne.

But the Consumers Health Forum says a review of the schedule is critical to the long-term sustainability of a universal Medicare system.

"We can stop wasting money on items that are not effective and that money can be reinvested into new items," the forum's CEO Leanne Wells said in a statement.

Head of the Sydney University Medical School Professor Bruce Robinson is chairing the review.

He says it has been estimated that 30 per cent or more of health expenditure is wasted on services, tests and procedures that provide no or negligible clinical benefit.

In some cases, they may be unsafe and could actually cause harm to patients, he said.

But Prof Owler dismissed the suggestion as "completely ridiculous", adding the figure came from the US with no evidence that it was applicable in Australia.

"To suggest that you're going to find 30 per cent of savings through the MBS - the only way you can do that is by cutting services to patients and cutting health funding," he said.