Publication: The Sydney Morning Herald
Section: Breaking News National
Date: 4 May 2011
Article excerpt:
Proposed changes to the health insurance rebate will encourage more than 1.6 million Australians to drop private hospital cover, a new survey shows.
The report by market research company ANOP and consultant Deloitte surveyed health insurance members about the federal government's plan to means test the 30 per cent rebate.
The report rejected Treasury's forecast of 25,000 consumers dropping their private health cover in the first year the changes come in.
"You are looking at very significant percentages that are going to drop or downgrade for hospital and even bigger numbers in terms of dropping or downgrading their extras cover," ANOP chairman Rod Cameron told media in Canberra on Wednesday.
Article excerpt:
Australian Health Insurance Association (AHIA) chief executive Michael Armitage said the government has underestimated the potential impact of introducing means-testing for the health insurance rebate. The report believes that over 1.6 million people would drop private hospital cover and that over five million Australians will reduce their policies. However, the government rejects these figures and believe that means-testing the rebate is fair..
