The Federal Government is playing down reports a razor gang has the private health insurance rebate in its sights ahead of the May Budget. The Government is wants to slash the cost of the $3.5 billion private health insurance rebate, The Herald Sun reports. It is rumoured to be considering several options, including an income means test to stop rich families receiving the 30 per cent rebate.

Opposition frontbencher Andrew Robb says the Government has always wanted to erode private health insurance.

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