Rebate cut to hit poor hardest

Joe Kelly | May 11, 2009

Article excerpt:

A WINDBACK of the private health insurance rebate would push more people on to public hospital waiting lists and hurt more than just the wealthy, according to the Australian Health Insurance Association.

AHIA chief executive Michael Armitage said moves to lower the rebate would put pressure on premiums across the industry, with the one million-plus private health insurance members with a household income of less than $26,000 to be hardest hit.

"Whilst this government initiative has been pitched in the press as affecting the higher income earners, it will be every person who holds a private health insurance policy who will have to pay more," Dr Armitage said.

"Those people who have been making an effort to be privately insured will be hit."

Article summary:

AHIA research showed that means testing the rebate would force more people onto public hospital waiting lists and target the elderly who "claim 5 to 6 times more than those under 65". IPSOS Australia research showed that 35 per cent of people would drop their insurance if premiums were increased by 40 per cent.

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