Impact of Means Testing the Rebate on “Extras” Cover
17 May 2011Last week’s Federal Budget confirms that the Gillard Government is determined to push ahead with its unpopular plan to means-test the 30% Rebate on Private Health Insurance, which will have a negative impact across the entire Australian health system.
You may be aware that the AHIA recently released the Deloitte Report into the economic impact of the Gillard Government’s plan to means-test the 30% Rebate.
The Deloitte Report confirms what many involved with Australia’s health system have predicted.
The Report indicates that:
- 2.8 million consumers will withdraw from General Treatment Cover over five years
- 5.7 million consumers will downgrade their General Treatment Cover
This will have a significant impact on all general treatment providers and members with general treatment coverage in their health insurance plans.
According to PHIAC statistics, a total of $3.1 billion was paid for allied health services (“general treatment/extras”) in the year ending 31 Dec 2010 which was an increase in benefits paid to members of 6.7% over the previous year. Of the $3.1 billion in allied health servcies benefits:
- $1.6 billion was paid for dental services (+6.3%)
- $547 million for optical services (+11.5%)
- $219 million for chiropractice services (+7.4%)
- $250 million for physiotherapy servcies (+10.2%)
- $78 million for podiatry services (+2.3%).
The Gillard Government has underestimated the impact of its plan to means-test the 30% Rebate on Australia’s health system.
It has been reported that the Government will reintroduce this legislation in the upcoming sittings of Parliament. It is pursuing a policy which will force Australians out of the private health system and into the public sector. The policy will put increased pressure on the public hospital system and force premiums to increase.
If you are concerned about the future of your Rebate, then contact your Federal Member, to inform them of your view of the Government’s plan to means-test the Private Health Insurance Member’s Rebate. Alternatively Sign our online petition to Save Your Rebate and Register to become a championand show your support for the Rebate.
Comments
Electricity costs are rising and now the Govt. wants to means test the private health insurance rebate. The Australain family is being slugged big time at present. This new idea is not necessary. I have contacted Rob Oakshott (my local member) lets hope the Independents think independently.
5 July 2011
2 years ago I was diagnosed with a class 3 bladder cancer, and having private health I was able to receive treatment straight away. If I didnt have private health I would have had to rely on the public hospital system where my cancer would have been classed as elective surgery and I would have been placed on a waiting list. Once bladder cancer reaches class 4 it is deemed unoperable, this could have happened at any time to me. Being on a pension I rely on the rebate to maintain my private health.