Doctors have welcomed moves to protect children and pensioners from a modified GP co-payment.
However, they're concerned the federal government is freezing the indexation of Medicare rebates until 2018.
The government has ditched plans for a $7 co-payment on all patients, replacing it with a $5 optional co-payment that will be determined by doctors.
Children under 16, pensioners and other concession card holders will be exempted, as will pathology tests and diagnostic imaging services.
Australians who are not bulk billed will have their Medicare rebate reduced by $5 to $32.05 for a standard consultation.
Doctors will receive $5 less for bulk-billed patients.
"AMA welcomes protection for vulnerable patients and exclusion of diagnostic imaging and pathology; concerned over rebate freeze until 2018," Australian Medical Association president Brian Owler tweeted after the government's announcement on Tuesday.
Doctors opposed the government's initial plan, saying it would discourage poorer people from visiting their doctor.
Dr Owler said he had already spoken to Health Minister Peter Dutton about the changes.
The AMA would work through the details of the new package and consult with GPs, he said.
AMA Vice President Dr Stephen Parnis said the government had finally heeded the AMA's long-standing call that vulnerable patients be shielded from any increase in cost to see a doctor.
"We're very pleased that the vulnerable are being protected in this model - so nursing home residents, kids under the age of 16, veterans, particularly the large numbers of concession card holders," Dr Parnis told reporters in Melbourne.
"These are groups for whom a co-payment of any amount would be a substantial impost and we have said all along that this group should be protected."
He said the AMA had been calling for this for six months, and the government had finally acted.
"They would have saved themselves considerable pain if they had taken to heart what we had said early on," he said.
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