Politics · Australia · 1 hr ago
Nearly 78,000 older Australians may drop private cover by 2030 under proposed cuts
The federal government plans to reduce the private health insurance rebate for Australians aged 65 and over.
Health department analysis forecasts that about 78,000 older people could drop their cover by 2030, nearly double the 44,000 figure the government has cited for 2028-29.
The department says the estimates are uncertain and based on past data and responses.
The changes are expected to save about $3 billion, which the government plans to spend on aged care.
More than 3.2 million older Australians would be affected, and about two million of them live on less than $37,000 a year.
Critics warn the changes could put pressure on the public health system and hurt vulnerable older people, while a former health department head says the impact on that system would be trivial.
The bill faces opposition in the Senate, and the Greens say they will not support it in its current form while considering possible amendments.
About 78,000 Australians aged 65 and over are expected to drop private health cover by 2030 under proposed changes to the rebate.
That forecast is nearly double the 44,000 figure the federal government has cited for 2028-29.
The proposal would reduce the rebate for older Australians and raise about $3 billion for other aged care commitments.
The government needs support from the Greens to pass the legislation, after the Coalition vowed to oppose it in the Senate.
The Greens have said they will not support the bill in its current form and are considering amendments, including a possible pensioner exemption.
- Who
- Australians aged 65 and over who have private health cover, and the federal government proposing changes to the rebate.
- What
- The proposed changes are expected to lead about 78,000 older Australians to drop private cover by 2030.
- When
- By 2030; the department forecast 44,000 would drop cover in 2028-29 and 78,000 the following year.
- Where
- Australia.
- Why
- The government proposes winding back the rebate for people aged 65 and over to raise about $3 billion for other aged care commitments.
Federal government
Coalition
Policy rationale
Federal government
The government says the changes will make private health insurance rebates fairer and that the overall number of people with private insurance will continue to increase.
Coalition
The Coalition says the policy will affect older Australians and criticises the government for relying on the lower estimate of people dropping cover.
Senate legislation
Federal government
The government is seeking support to pass the bill and needs the Greens on board.
Coalition
The Coalition has vowed to block the legislation in the Senate.
making the private health insurance rebates fairer
Either he didn't read his own briefs, or he's been deliberately misleading older Australians
This is a measure which affects pensioners more than any other group, and particularly affects low-income pensioners, so the Greens should come to the table and they should block this measure
The health department analysis forecasts that 44,000 Australians will drop their private cover.
The forecast number of older Australians dropping cover rises to 78,000.
The proposed changes are expected to lead nearly 78,000 Australians aged 65 and over to drop private cover.
- Older Australians expected to drop cover
- About 78,000 by 2030
- Earlier forecast
- 44,000 in 2028-29
- Affected population
- More than 3.2 million Australians aged 65 and over
- Low-income affected group
- About 2 million live on less than $37,000 a year
- Expected savings
- About $3 billion
Sources
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