Older Australians on the pension, set to fork out more for private health insurance due to government budget measures, will face ”unfair” cost pressures, according to an independent MP.
Labor announced the scrapping of the private health insurance rebate for Australians over 65s in May as a measure to address intergenerational inequity and to help fund aged care.
The rebate people receive depends on your income, though some older people currently recoup eight per cent more than others on the same earnings. Ending that would save $3 billion over four years, according to the most recent federal budget.
On Monday, modelling from the Parliamentary Budget Office showed about $1.6 billion of the projected savings will come from pensioners by the end of the decade.
Independent MP Monique Ryan labelled the rebate cut a cash grab that unfairly targets pensioners who should be carved out from the legislation.
“Punching down on old people in what it claims to be a way of finding cash for aged care is not the way to go about private health insurance reform,” Ms Ryan said on Monday.
“Now that’s going to take away half of the potential financial benefit of it, which I would say brings into question the work of this legislation at all. I would really like to see it shelved.”
Removing the Howard-era rebate is a lazy tax on pensioners, according to coalition health spokeswoman Anne Ruston.
“The government have got no idea about the details that sit behind this,” Senator Ruston told reporters.
“They still haven’t modelled the cost on our public hospital system, and we know that states and territories are already out there yelling and screaming about the impact on them.”
Australian Medical Association chief Danielle McMullen said the changes would likely shift costs to the public sector by removing the incentive for older Australians to hold on to private health insurance.
“This is at a time when the private health sector is facing significant pressures and our public hospitals are under considerable strain,” Ms McMullen said recently.
Health Minister Mark Butler’s office has been contacted for comment.
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When a public patient in public hospital and they ask for private health insurance details to offset their cost. Do not give them your private cover details. This will put extra pressure on the public system even before proposed legislation changes come into effect.
How can you be a public patient but have private health cover. By giving your private health details you are not charged and your private health offsets some of the charges so it will not put extra pressure on the public system if anything it helps them financially to continue to offer help to others who don’t have private cover.
My husband went to the public hospital with an emergency condition ( Abdominal Aortic Aneurism ) , we have private health cover , the hospital knew this but still admitted him as a public patient
That’s what keeps happening to me, why are we paying for health cover?
Exactly. I’ve had private health cover for 60 years & had one surgery. Very fortunate but now in my late 70’s when I may need it, I’ll probably have to cancel it. Very shortsighted this Gub’ment! More oldies will become dependent on the public system thus adding more pressure.
As a pensioner, the frustration I feel regarding the lack of standing up for ourselves to be irritation enough for me to lose my temper. I worked hard for everything I got and paid it all off myself as a single. I deserve a pension and help to keep me in my home. I am furious that I am forced to kowtow to AI ........... unbelievable. I have contacted many people in Government and private organisations who are supposed to stand up for Seniors and 'silence reigns'. It is about time we started to stand up for ourselves and make a heck of a noise to get noticed
I believe it’s going to be indexed on a percentage scale according to your financial situation. The more financial you are will determine what the percentage will be. I believe it’s not going to be cutting the rebate in total.
I believe the rebate is being cut for people over 65 from 32 % to 24% effectively increasing your premiums by 8%, it's not indexed to my knowledge just a direct cut to rebates for over 65s,a reprehensible callous act by Labour
Labour pollies should forfeit some of their fringe benefits to cover the cost. Scandalous treatment for aged pensioners
Dead right make them have the same super scheme as the rest of us
Absolutely! These scumbags have got our country into this monumental debt because of their gifting, giving & squandering billions with no consequences! Now the country is drowning with undesirable immigration who are a drain on our resources!
The solution, yes.. tax the oldies…who have worked all their life, paid taxes, are trying to look after themselves in old age!
If the grubs in gruberment cant do their job, their wages should be garnisheed!
Keep the parasites away from the elderly!
Exactly, let these politicians forfeit some of their excessive "salaries and perks" especially the retired ones. If they are retired they do not need and office and staff and funding for all that and nor do they need a travel budget. Pensioners have worked and paid tax not by bludging off the public purse. Generational in-equity is a fraud, there are jobs out there and there are a huge amount of unemployed - how about they be made to get a job instead of pooling their generous unemployment with their mates and having a good time!!!!
Pick on the Pensioner.
We worked for years, paid our taxes.
Paid our Private Health for years to stay out of the Public Hospital System. Now we are getting another kick in the pants from the Government. How about making the unemployed work for their Payment fortnightly helping the elderly with gardening and house cleaning. Go after them for doing nothing to help this country like we did for 40 plus years.
I would like to know how much a year does it cost to pay these Government Members plus the massive pensions for past Members. Total please Albo.
Don't think that you will get any votes from us older generation come next election
I so agree with you! It’s about time the gravy train for expollies was derailed. Why should I pay for them to fly around when they had big fat salaries and so so many perks. If all pensioners who have health insurance jack it in all at once, the system would fall flat on its face. It is a kick in the bum when we may need it most. No vote for Albo from me!
Agree with Linda 100 Per Cent. I will give my vote to the Greens next time. Sick of paying for the lifestyles of the rich and famous ex pollies : Put an end to the gravy train ASAP.
You given vote to the Greens , it goes straight to Labour ! Please do your research !
Linda M . Voting Greens is voting Labor!!!!
Your Green vote will go straight to Labor! Please think about this.
Exactly my thoughts...
I maintain my health cover because I have a family history of hyper tension now Labour have pulled the rug out from inder me’ . Very short sighted by jealous red Albo.!
Just typical of socialist Albo. Hit the older vulnerable retired tax payers the hardest then redistribute to the overloaded and much abused public system. How to crash our health system in one easy swipe. Lousy labor teits
Agree 100%
Shame Labor.
Sounds like a decision that the Labour government would make in the UK. Decide to do something, without thinking about the consequences.
As Australian born and raised in this Country, I am so sick and tired of the way Pensioners are treated. Work all their lives most very hard physical jobs, got no hand out from Government but they are the ones having everything removed from them and made to go without even more FOR people that have not worked a day in their lives been on benefits because they didnt want to work (not talking about the people that had genuine heath issue) or come to this Country and had help given assisted with housing and other benefits that most Austrian born do not receive.
Politician's will never know the real struggle older people have to go through everyday.
Agree they should b rewarding real Aussies whether they could afford health insurance or not.
Had insurance yrs ago. Figured total waste of money plus still xtra costs to pay out. Everyone cancel health insurance let system collapse. Greedy bleeding mongrols feeding all that money overseas & still importing a lot of useless wasted cheap workers. Make our own unemployed do training & stricter conditions to get free payouts. There would b no high stat's on older pensioners who are bing penalised that they got wher they r in old age from bing kept by govt. They bloody well worked & worked hard.
Vote in Pauline's one nation.
As it is now its spot the aussie.
Wouldn’t happen if Albo’s mum was still alive… other mums and dads obviously don’t matter!
The saddest part of this proposal is that many pensioners who have diligently kept heath insurance for many, many years will now have to let it go. The increase in health care for these previously hard working citizens will cost the government way more than they save. As such a pensioner I am devestated by the plans. Cost of living is difficult enough at the moment, and we have always insured ourselves, but don’t know that I can absorb the cost without reducing food and power costs
Labour has to go, enough is enough!!!
Gerry. F
Get rid of this Socialist Labor Government. We have paid health insurance for 60 years and not bludged on the public system. If this happens we will not be able to pay Private cover any more. Public Hospitals are in a great big mess in this country already so how do intend to fix this huge problem if this rebate goes and thousands will be forced to to go public. How about when pollies get out of govt let them live on their own super and stop sucking benefits from the taxpayer. All private citizens have to live off their super they have worked hard for to save for their retirement. Enough is enough !!!!!
You note that the politicians never ever give themselves a cut in allowances, fringe benefits or any other benefits to assist in the budget.....its always other people who must contribute to budget savings.
This government has got this country in so much debt by their constant hand outs, pity they don’t give more to pensioners instead of lining their own pockets! They haven’t a clue about economics as can be seen by that Chalmers bloke and they need to go. Unfortunately people on government handouts probably out number the rest of us, they live off us retired people like leeches! I really despair about where this country is headed with small businesses disappearing so quickly and all our manufacturing going offshore. Where will this country be in 50 years time?
I would love to see someone with foresight in government- someone planning for the future not the here and now but unfortunately there’s no one waiting in the wings to give me any hope for something better than the idiots we’ve got now - in it for themselves only!!
We have mass migration. I want to know exactly how many of them are qualified to take up jobs that are needed in this country rather than just living on handouts? As we are still short of workers, I would hazard a guess ”not many!” And so the rot goes on. Albanese and his cohorts are useless and need to be ousted while we still have some businesses left otherwise left to them the country will be bankrupt!
Be aware although we produced the PBS safety net card at the private hospital for any prescriptions for tkr they ignored this billed me for over $100 I rang and explained the situation again today the call came to say they reduced it to $54 we have to think like this is our own little business and check every bill yourself question and query everything.
Governments forget that the over 65 cohort of Australia makes up approximately one third of the population and the majority of us vote! I will need to forgo some of life's LITTLE luxuries to keep paying my health insurance, but will try to do it. ( One still needs to eat, even if it is baked beans!) The public system is so overloaded already that it would have killed me off before this. This I have learned from experience.
The ministers justification for this cash grab from the vunerable is that it will level the playing field between young & aged & make the system fairer. Unfortunately the money earning potential between the two groups is not equal. Full Pensioners are locked into an income bracket. Many are limited by the physicality of working, A percentage have skills that are no longer needed in our society or replaced by AI. Fairness is not a concept that has any place in this, disgusting does.
This is typical of a Prime Minister, Treasurer and Treasury officials who do not have a stone motherless clue about what they are doing. Bugger the models, just forget this intergenerational equity bullshit, reconnect with the people and try a bit of common sense for once.
"intergenerational INIQUITY"????????????? Please proof read your articles. I presume you meant "inequality".
Cannot afford will go public and clutter up public hospitals
Hi I keep seeing sites on Facebook saying seniors are entitled too some of their fees back. I was told this is a scam. Are pensioners on basic pension entitled too any help please
Are pensioners on a basic pension entitled too any fees back. I have seen a lot of adds on Facebook and thought it a scam thanks
I HAVE BEEN A LABOUR SUPPORTER ALL MY LIFE BUT THIS IS A BRIDGE TO FAR WE STRUGLE EVERY MONTH TO PAY OUR HEALTH INSRANCE ON OUR PENSION AND NOW AFTHER ALL THESE YEARS THE GOVERMENT SHITS ON US WELL F--- THEM CANT WAIT UNTILL THE NEXT ELECTION THEN BUY BUY
Typical socialist thinking..............making everyone equally poor..........!
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