Outsourcing Medicare to hit privacy: union

Outsourcing Medicare payments would erode Australians' privacy, the public sector union believes.

The federal government wants to outsource the payments of more than $30 billion annually, in line with a recommendation from its commission of audit.

Health Minister Peter Dutton says the move will reduce red tape for doctors and save taxpayers money.

But the Community and Public Sector Union argues outsourcing payments is privatisation of Medicare by the back door.

It would put thousands of jobs at risk and undermine the privacy of millions of Australians.

"Australians would be concerned that their most sensitive health records held by Medicare could go to a private company and indeed could be held overseas," national secretary Nadine Flood told reporters.

The union has launched a television campaign in a bid to have the system retained by the Department of Human Services.