SA government concerned over proposed health insurance rebate cuts

South Australia is warning that proposed changes to private health insurance rebates for older people could lengthen elective surgery waiting lists and add pressure to public hospitals.

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When Gough Whitlam brought in Medibank and Medicare, I joined Medibank. As soon as the office opened, I joined Medibank.

The federal government plans to remove higher rebates for people over 65 and redirect the projected A$3 billion in savings over four years to aged-care services. The legislation is before Parliament and would take effect in April next year if it passes.

Federal Health Minister Mark Butler said support would remain the same but would be based on income rather than age. “What we have right now is that two households living next to each other on exactly the same household income will receive a different level of taxpayer subsidy, depending on whether they’re over 65 or under 65,” he said.

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I don't believe the Albanese government is doing a lot of things wrong but this is a black mark in my opinion. They're attacking the pensioner.

South Australia’s government submitted concerns to the parliamentary legislation committee. SA Health chief executive Robyn Lawrence warned that removing age-based rebate tiers could have unintended effects on access to care and increase pressure on public hospitals. The submission said even a 1% rise in people dropping private insurance could affect elective surgery lists, outpatient assessments, diagnostic services and rehabilitation care.

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Every single dollar that we effectively save through that change will be invested in new aged care services that, frankly, we just have to start putting in place if older Australians are going to get the care and dignity that they deserve.

South Australian Health Minister Blair Boyer said the state’s health system was already under pressure. Retiree Phil Joyce, who has held private insurance since Medibank began, said he had reduced extras and downgraded his hospital cover as living costs rose. He said losing the higher rebate could leave him hundreds of dollars out of pocket each year.

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We are not in a position to be having decisions made which are going to bring more pressure to bear on our emergency departments and I am concerned that could be the case here.