Amid radical proposals for free GP and acute care and medicines, Ms Harney claimed the initiative did not promise a one-tier system for all.

The minister warned the Adelaide Hospital Society Conference on healthcare financing against creating false expectations on funding by moving from taxation to levies or insurance.

"What matters most is how resources are used, not how resources are raised from the public," she said.

Opponents of Ms Harney's healthcare policies have blamed her for the creation of a two-tier healthcare system where public and private hospitals share the same grounds.

They have also criticised consultants who are allowed to treat private and public patients.

Ms Harney said: "A pure one-tier system is not on offer, from anyone that I can see. Let us be clear and honest about that.

"Both Social Health Insurance and Compulsory Private Health Insurance recognise that people will still be free to purchase additional private health insurance, and go to doctors and hospitals privately, above and beyond the State benefits package. The agenda we are leading in Government now for health policy contains many key elements that are in fact common to all systems of healthcare, no matter how they are financed."

A proposal by the Adelaide Hospital Society said current spending on healthcare could be diverted to social health insurance for all with everyone entitled to a "common basket" of services free of charge - GP care, medicines and acute hospital care.

It has been costed at 1,314 euro a year extra for a married couple earning 70,000 euro a year and 207 euro extra a year by a single person on 25,000 euro a year.