Australians are spending more than ever on self-funded healthcare amid rising out-of-pocket costs for medicines, hospital stays and specialist fees, new data shows.

The latest health spending data from the Australian Institute of Health and Welfare, to be released on Wednesday, shows patients spent $3.9 billion on out-of-pocket hospital expenses in 2017-18, up $560 million or 17 per cent over the financial year, and quadruple the amount spent a decade earlier.

Australians spent $9.4 billion on medicines and pharmacy products not listed on the PBS in 2017-18. Credit:LOUIE DOUVIS

Specialist out-of-pocket costs increased by almost $200 million in 12 months, and GP out-of-pockets by $38 million, both significantly faster than inflation.

The AIHW figures also show the growth in federal health spending in 2017-18 was almost four times slower than the increase in tax revenues.