Advocacy & Rights
Pensioners bear half of $3bn private health rebate cut
Advocacy & Rights
Pensioners bear half of $3bn private health rebate cut
Advocacy & RightsPolicy & LegislationPricing & Funding
COTA Australia · 3 min read · 21 hours ago
Original source
Summarised by Stellar
Key points5 points
- PBO modelling estimates 1.5 million age pensioners will be impacted by the rebate changes, making up 42% of those affected and 52% of the over-70 cohort.
- The changes take effect from April next year, cutting $3 billion from the private health insurance rebate.
- COTA Australia warns the policy will push more older Australians to downgrade or drop private cover, increasing pressure on public hospitals.
- 82% of Australians oppose removing the higher rebate for over-65s, and one in three would consider downgrading or cancelling cover if changes proceed.
- COTA Australia calls for a complete rethink of the policy, highlighting that one in four older people already live in poverty.
Summary
Parliamentary Budget Office modelling shows age pensioners will absorb almost half of the $3 billion cut to the private health insurance rebate, with 1.5 million affected from April next year. COTA Australia warns this will force many older Australians to downgrade or cancel their cover, increasing out-of-pocket costs and straining the public hospital system. The group urges the government to rethink the policy, citing research that 82% of Australians oppose removing the higher rebate for over-65s.