'Double whammy' leaves 4.4 million Aussies paying up to $815 more a year
About 4.4 million Australians could be left paying $815 more a year under a proposed private health insurance rebate cut and increasing premiums, according to new data.
Health Minister Mark Butler last week announced the rebate for those over 65 will be lowered to the same level as everyone else to re-establish "intergenerational equity".
Canstar found that the proposed rebate cuts would mean those aged 65 to 69 would pay $205 more a year, while those aged 70 and over would pay $410 more a year on a gold policy.
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Under a basic policy, those aged 65 to 69 will still be paying $53 more a year and those aged 70 and over will pay $105 more a year.
The proposed change would affect the 4.4 million people aged over 65 in Australia, according to figures by the Australian Bureau of Statistics.
Canstar's data insights director Sally Tindall said older Australians have been hit by a "double whammy" after private health insurance premiums increased by an average 4.41 per cent on April 1.
The rebate cut and premium increase combined could leave the cohort paying between $136 more a year on a basic policy and up to $815 more on a gold policy.
"It's a potential double whammy that many older Australians won't be able to afford, particularly those on modest fixed incomes," she said.
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Older Australians have been hit by a "double whammy". Glenn Hunt/Fairfax Media
"Some may even be forced to reconsider the level of cover they hold."
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."
The savings from reducing the rebate for older Australians will be reinvested in aged care.
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