Impact of Means Testing the 30% Rebate
A new Report into the impact of the Government’s policy to means-test the 30% Rebate on Private Health Insurance has concluded that the policy will have a negative impact across the entire Australian health system.
Last year private health funds contributed $12.4 billion in benefits towards the healthcare of the 11.7 million Australians with private health cover, emphasising the importance of the private health sector in delivering a balanced health system.
Government policy measures such as the 30% Rebate on Private Health Insurance, Lifetime Health Cover and the Medicare Levy Surcharge make private cover more affordable, especially for those 5.6 million Australians with private cover who live in households with annual incomes below $50,000.
A new Report by Deloitte, based on ANOP/Newspoll research of 2,000 Australian households, into the impact of the Gillard Government’s policy to means-test the 30% Rebate on Private Health Insurance has concluded it would force Australians out of the private health system and into the public sector; that it would put increased pressure on the public hospital system; and, force premiums to increase, disadvantaging lower income earners who remain in private health insurance.
In summary, the Report found that as a consequence of means-testing the 30% Rebate:
- 1.6 million Australians will exit their private hospital cover (compared to Treasury estimates of only 25,000), with a further 4.3 million downgrading their level of cover;
- Private health insurance premiums will rise 10 per cent above what would otherwise be expected, making private cover less affordable for all Australians; and
- Pressure on the public hospital system will increase as more than 845,000 additional treatments will be required as people withdraw from their private cover at an estimated cost to government of $3.8 billion.
Find out more information about these reports
- Deloitte Report – Economic Impact Assessment of the Proposed Reforms to Private Health Insurance
- ANOP/Newspoll Research – Impact of Means testing the Private Health Insurance Rebate
Comments
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Labor only getting rid of the rebate because it’s an easy way to save money. They are desperate because they are so good at spending money. Roxon’s argument that the rebate is inequitable, what garbage! The higher income earners are paying for the public health system, the Medicare surcharge AND private health insurance.
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I am sorry Lara but I am not a high income earner and have been in health benefits all my life so you have not be subsidizing me. I worked hard to keep in private medical insurance. Now I no longer are able to work and would not be able to afford to have medical insurance if they take the 30% away from me. In real terms the rise that the funds put up their fees each year is way more than they say because they are taking the 30% rebate given by the government. You are just chasing your tail with all these rises. It is ok for the politicians because they have their enormous pensions they get to retire on !!!! given by us the people. I don’t care who is in they are all as bad as each other. Whether it be labour or liberal. They all have broken promises they have not kept. I wonder how they would go surviving on what we leave on !!!!
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It seems at every turn Gillard and her cronies (Greens and independants) are hell bent on ruining what was a strong economy. Failure after failure. What’s next? They bought your votes with a hand out (stimulus package) and now we are all paying a very high price. Don’t be fooled again at the next election.
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When you understand the grand plan of the Labor Party, it’s simple. Centralise everything- health, communications (NBN), remove anyone who gets in the way (media enquiry), tax success to oblivion (MRRT), collect as much tax as you can (Carbon Tax), stop any grants to private schools and force people into an inferior public system- and then hand out subsidies and welfare to those who vote Labor. This is just another Labor attack on those they perceive don’t vote for them. The clock is ticking and we can all look forward to a generation without Labor in power after the next election. Bring it on.
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At what point will the government see that an income of $50,000+ isn’t a guarantee of wealth?!!
Forcing another 25,000 would stress an overly stressed public health system let alone 1m+.
The cost of upgrading the public system to cope is exponentially greater than the pittance the means testing would bring in in revenue -
As if the expansive carbon tax isn’t enough for the Gillard/Greens/Independents conglomerate. Means testing the private health rebate is just another excuse of Government gouging taxpayers to pay for their poor financial management of the economy, ie., running the country from a surplus to a deficit since taking government.
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It never ceases to amaze me how short sighted our Government is.
Increase private health cover, then see the increase load on our public health system. People will drop their health cover – that is guaranteed! -
It seems to me that our wonderful government is yet again out of touch with ordinary people and pensioners. As self funded retirees it is becoming increasingly difficult to make ends meet. At every turn things just keep going up and our cost of living going through the roof and those on fixed incomes who do not get cost of living increases are suffering along with families. The public system can’t cope now, how will it cope when people start pulling out of Private Health, the answer is it wont and more people will suffer, but not our politicians.
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Please don’t make it even harder for me to have private health insurance! I have finally taken out insurance because I have been on a waiting list for 2 years, and am told I will have to wait at least another 6 months! I am in constant pain and starting to despair, which is why I’ve taken out insurance I can’t easily afford; I’ll still have to wait 2 years before the private insurance will do me any good, but at least if/when the next hip needs replacing I won’t have to spend years in great pain. Good, basic Health care should be a right for Australians, not something we have to buy.
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Jillian you might be able to get your hip replacement sooner but at what additional cost. I am old enough to remember when private health insurance covered everything and there were no gap payments. I am due for eye surgery shortly and I pay top cover private health and my out of pocket expenses will be $2300 per eye and this does not include the anaesthetist fees. It would be nice to return to the days when you had a choice medicare or private health cover not both. A typical Labor government rip off which just continues to grow. Bring on an election.
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It seems that once again working full time does not pay! Why is it that us middle income earners always seem to get the rough end of the stick? Surely the Govt. should have the sense to realize that the medical system is not functioning as it should and that hospitals are not coping with demands. Why then are they punishing those of us who are sacrificing luxuries in order to take out cover for our families? It doesn’t make sense!!
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It seems that those of us who do support ourselves and our families will be hardest hit at every turn. With 3 dependent children (and a 4th doing a traineeship, which meaans that in order for him ot maintain his health insurance we pay the premiums!) and the general increases in the cost of living on all fronts, it is becoming more and more diffucult to keep our heads above water. We just break the threshold for the family tax and youth allowance payments.
This change will force families like ours back into the public health system, which is already under funded and over worked.
This is not the way to support an already over burdened health system!
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I am sick to death of being told that if you earn over $125000 you all of a sudden become some high income earner with all of these pots of gold supposed laying around- Give us a break!
We have 3 young children and between living costs, education and trying to save something for thier future there is not much left over. The goverment wanted us to get a better education so we could get better paid jobs but we had a HECS debt as a result then we lose over 40% in income tax, supposely we earn to much so receive no child care benefit and now you want to hit us again through private health?
Come on Gillard goverment it’s time for a reality check. You are not winning fans and certainly won’t be in goverment next time round if you continually slug middle income Australians by falsing thinking we have pots of gold or is it money trees in our backyards?? -
Gillard has to go! The health system is already under pressure and now she wants to make the health system worse.
You only need to go to any ED in Australia on a weekend to see how bad Australia’s health system really is.
Australian’s pay the Medicare Levy which now includes a flood tax.
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taking away the 30% rebate would only hurt our health system more as it is there are so many people on waiting list for public hospital and family who can’t afford health funds we will see so many children’s health neglected and people’s life’s at risk , when will the goverment start looking at our health system and fix it dental is another where children are neglected because of the cost forget the carbon tax put that money towards our healthcare system where we really need it
thank you nicole -
As usual the Federal Government figures back their own claims. When this measure was introduced the reverse was true. When they are proved wrong everyone will lose. The public health system will overload with the resultant lack of care. Register my support to keep the rebate.
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Yet another blow to middle income earners.
There is little incentive to stay in a private health scheme and of course, this will have a negative affect on the public system.
Please register my support!
Have your say
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Related Content
How Means Testing Will Affect You And All Australians
Private Healthcare Australia CEO Michael Armitage has said the move to means test the 30% …. Read more
ANOP Report – Impact of Means Testing the Private Health Insurance Rebate
ANOP Research Services Pty Ltd was commissioned by the Australian Health Insurance Association to conduct …. Read more
Deloitte Report – Economic Impact Assessment of the Proposed Reforms to Private Health Insurance
Deloitte was engaged by the Australian Health Insurance Association to conduct analysis considering the potential …. Read more
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11 June 2013
will Mr Abbot fix this problem along with all the other promises?