The Turnbull Government looks set to unwind the Medicare rebate freeze in the May budget, in a move that could cost in excess of $3 billion.

Key points: Cabinet ministers say Government needs to dramatically demonstrate its support for Medicare

Cabinet ministers say Government needs to dramatically demonstrate its support for Medicare Health Minister Greg Hunt says he and Mr Turnbull will review the Medicare rebate

Health Minister Greg Hunt says he and Mr Turnbull will review the Medicare rebate Labor first introduced the Medicare rebate freeze in 2013 as part of a $664 million budget savings plan

Some Cabinet ministers believe the thaw is essential if the Coalition is to ensure the successful "Mediscare" campaign run by Labor in the weeks before the July election can never be repeated.

Coalition strategists believe that campaign cost it several seats.

One minister told the ABC the Government needed to dramatically demonstrate its support for Medicare to inoculate it against future attacks.

The Prime Minister has admitted the Coalition's 2014 budget fuelled public fears about the Government's commitment to universal health care, by including plans like the ill-fated $7 co-payment for GP, pathology and imaging services.

New Health Minister Greg Hunt seems keen to strike a deal with Australian Medical Association (AMA) and the Royal Australian College of General Practitioners (RACGP) to remove a key irritant in the Government's relationship with the powerful doctor's lobby.

On the ABC's AM program on Wednesday, he was asked whether any thawing of the Medicare rebate freeze could be on the cards in the May budget.

"The Prime Minister has said and I have said that is an item that we would be willing to review and we are willing to review subject to a very clear set of reforms that will help make the system stronger and better," he said.

AMA President Dr Michael Gannon said he understands the overriding concern about balancing the budget.

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"That's responsible Government, but I am genuinely hopeful they will see the value in investing further in our health system, Dr Gannon told The World Today.

"They need to be clever in finding ways of new spending."

Dr Gannon said he had been encouraged by his early dealings with Mr Hunt.

The difficulty in ending the freeze is dealing with the cost, as the Government wrestles with keeping the budget deficit in check and protecting Australia's triple-A credit rating.

The "temporary" Medicare rebate freeze was first imposed by Labor in 2013, designed to save the budget $664 million.

The ABC has been told the cost would depend on what kind of deal was struck.

A complete retreat could cost more than $3 billion, so a range of other options are being considered.

It seems a compromise will be struck with stakeholders, like the Australian Medical Association and the Royal Australian College of General Practitioners to try and minimise the budget cost.

It is possible that the Treasurer and Finance Minister might demand that the cost be contained within the existing health budget.