Millions of pensioners ‘furious’ after private health changes, polling shows
Updated . First published at
New polling has shown the extent of the impact of the federal government’s move to slash the private health insurance rebate for about 4.4 million older Australians, with the industry warning it could leave more people than expected in the lurch.
RedBridge has found 39 per cent of 1505 people aged 65 and over would drop their cover when their rebate is lowered to the same rate as other people on the same income next year.
Older Australians will have their private health insurance rebate slashed from April 1, 2027. iStock
Private Healthcare Australia chief executive Dr Rachel David said the data suggests more people would drop their cover than the federal government’s estimate of 44,000 people.
“I have never seen so much genuine anger about a government policy before,” she said.
“Older people are furious about this.
“Many of them have been investing in health insurance for decades and right when they need to use their cover most, the government is forcing them to pay hundreds more a year for it.”
COTA Australia has similarly found that more than 33 per cent of its 40,000 members are planning to downgrade or cancel their cover.
There are fears more than a million older Australians will be pushed into the already-strained public health system. The Sydney Morning Herald
The influx of older people that are believed to lose their coverage is feared to impact the public hospital system.
“If older Australians leave private health insurance in significant numbers, that demand doesn’t disappear,” COTA chief executive Patricia Sparrow.
“It shifts to the public hospital system, creating longer waiting times and more pressure for everyone. The system needs to be looked at as a whole.”
The federal government is seeking to lower the high private health insurance rebate for people 65 and over to the same rate as other people on the same income from April 1, 2027.
The $11 billion in savings from the policy change will be invested in aged care services in a move hoped to promote intergenerational equity.
But the RedBridge poll found that people across generations were sceptical that the policy change would create fairness.
“We are also hearing from middle-aged Australians who are already juggling the cost of raising children and supporting ageing parents who are saying they may have to step in and help pay their parents’ health insurance rather than see them lose their cover,” David said.
“The concern is trickling down.”
Health Minister Mark Butler said the changes would promote intergenerational equity. Alex Ellinghausen
Shadow health minister Anne Ruston said her Labor counterpart, Health Minister Mark Butler, has badly underestimated the damage his policy will do.
“We know older Australians on fixed retirement incomes are the least able to respond to a price shock like this no wonder pensioners are already telling pollsters they’re ready to walk away from their cover,” she said.
Ruston said the Coalition would fight Labor’s proposed change when it goes before the parliament.
“We will do everything we can in the parliament to block these changes and have called for a Senate Inquiry to pursue the truth about who will be most affected by this new tax,” she said.
Earlier this year, Butler said the changes would not be welcomed by all, but it was the “right thing to do”.
“Right now, we subsidise private health cover for Australians over 65 at a higher rate than other Australians,” he said.
“That’s not fair between generations.”
“And it’s simply not the best way to spend precious taxpayers’ dollars on behalf of older Australians when we need to do so much heavy lifting in Aged Care.”
Nine.com.au has contacted Butler’s office for further comment.
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