A policy shift to base private health insurance rebates on income rather than age is expected to have minimal impact on public hospitals, according to health economists. Analysis suggests only a small fraction of the insured population—between 0.1% and 0.4%—would drop coverage under the proposed changes, while the government could realize annual savings of up to $940 million. The adjustment, aligning rebate rules for those aged 65 and over with younger policyholders, is set to take effect next year. Critics argue the move could reduce financial support for older Australians, though officials maintain it will not strain public healthcare systems.
Research finds just 0.1-0.4% of the total insured population will ditch insurance, while the government will save as much as $940m a yearGet our breaking news email, free app or daily news podcastRemoving the higher private health insurance rebate for people aged 65 and over is good policy that is unlikely to place additional pressure on public hospitals, according to health economists.The proposed changes, set to take effect in April 2027, will mean the private health insurance rebate will depend only on how much money a person earns – matching the rules for people aged under 65. Continue reading...
