What’s changing for the private health insurance rebate
What’s changing for the private health insurance rebate and how this impacts you.
As a local not-for-profit health insurer we are deeply concerned about the impact of this proposed change at a time when cost-of-living pressures are already significant, and on the longer-term impact it could have on the continuing availability of key health services in our area.
We are lobbying at local, state and federal levels to make sure that these concerns are heard and encourage our community to do the same.
You can find information on lobbying your local MP or add your voice to the Members Health Fund Alliance petition here.
What is this about?
To help manage the rising cost of healthcare, the Australian Government currently provides a higher Private Health Insurance (PHI) rebate for older Australians. Once someone turns 65, their rebate increases to around 28%, and for those over 70 it rises again to about 32%, depending on income thresholds.
These higher rebates recognise that health needs generally increase with age and that many older Australians rely on fixed incomes, such as the age pension. Under recently proposed changes, these increased age based rebates would no longer be available. Instead, Australians aged 65 and over would receive only the standard base rebate, the same rate applied to people under 65.
Why does this matter?
Reducing the rebate for older Australians could make private health insurance significantly more expensive for the people who often need it most.
For those living on fixed or limited incomes, even a modest increase in premiums can make it harder to maintain their current level of cover. Industry groups and healthcare organisations have warned that these changes may lead some older Australians to:
Downgrade their policies
Drop extras or hospital cover
Cancel their private health insurance entirely
The real impact this could have
A shift away from private cover could increase demand on the public hospital system, contributing to:
longer wait times
greater pressure on already stretched services
reduced availability of elective surgeries
fewer options for where/when people can receive treatment
In short, while the rebate change directly affects people over 65, the impact could be felt throughout the entire health system.
What exactly are the proposed changes?
At the moment, the Australian Government helps reduce the cost of private health insurance by offering a Private Health Insurance (PHI) rebate.
Under the current rebate model:
People aged 65–69 receive a rebate of around 28%.
Those over 70 receive a slightly higher rebate of around 32%.
Under the proposed changes, this would:
Remove the current means tested rebate for people aged over 65
Replace it with a lower, standard rebate rate for these age groups
What this could mean for you
You may experience:
Higher premiums
Reduced level of cover
Delays in accessing treatment or longer waits in the public system
This change could affect everyone
Even if you’re under 65, these changes could still affect you due to increased pressure on the entire health system, potentially leading to:
Higher premiums for everyone over time
Longer public hospital wait times as more people rely on the system
Reduced availability of private hospital services if demand drops
Less choice about when and where you can receive care in the future
What can you do?
While we here at Hunter Health Insurance are actively lobbying at local, state and federal levels, every voice matters. We encourage our community to raise your concerns, by simply adding your support to the Members Health Fund Alliance petition or even lobbying your local MP.
Click the button below to add your voice to the petition.
