A plan to cap rebates for out-of-hospital costs will lead to higher hospital admissions and suicide rates, rather than save the public money, doctors warn.

The Turnbull government had hoped its changes to the Medicare Safety Net would take effect from the start of next year. They are expected to save $266.7 million over five years, which would be put into the Medical Research Future Fund.

Getting on with it: Health Minister Sussan Ley.

The changes will lower the spending thresholds required for patients to access benefits, but cap the benefits payable for individual medical services once this has been reached.

Psychiatrists and oncologists renewed their calls for changes to the legislation, which they say will make life-saving services more expensive for people who need them most.