Tens of thousands of older Australians are expected to dump their private health cover by the end of 2030, following the controversial proposed changes made by the federal government.
The proposal would reduce the financial assistance Australians aged 65 and over receive towards their private health insurance premiums, saving about $3 billion, which could then be redirected to other aged care services.
The federal government has defended the policy, citing that only 44,000 people will be affected.
However, health department analysis released under Freedom of Information (FOI) laws reveals that this is the predicted number for 2028-29, which is forecast to rise to double that amount to 78,000 the following year.
“Either he didn’t read his own briefs, or he’s been deliberately misleading older Australians,” Shadow Health Minister Anne Ruston said.
The health department said the estimate of 44,000 reflects the “initial effect of the policy at a point in time” and that estimates were subject to change, as they were based on historical data and responses that might not reflect future behaviour under the new policy.
The proposal has been criticised across the country, which aged care advocates and the private health insurance industry all raising concerns about how this would put pressure on the public health system and affect more vulnerable Australians.
The Coalition plans to block the legislation in the Senate, so the federal government must convince the Greens to back them for the bill to pass.
Last week, the Greens declared they would not support the current form of the legislation and are looking for different amendments including exempting pensioners from the changes, while Independent MP Monique Ryan called on the Greens to stop the bill.
“This is a measure which affects pensioners more than any other group, and particularly affects low-income pensioners, so the Greens should come to the table and they should block this measure,” Dr Ryan said.
“This is a government which is refusing to be transparent about a really important measure and Australians need to hold them to account.”
However, health economists and public policy think tank The Australia Institute have backed the move, saying it would not impact the public health system that greatly, and that the money can be spent on services that improve health and reduce hospital demand.
A federal government spokesperson said the changes were about “making the private health insurance rebates fairer”.
“The current additional rebate is 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,” they said.
“Every dollar will be reinvested to deliver more aged care beds, more packages and better care for older Australians.”
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