TOM ZED

Article excerpt:

MORE than 70,000 South Australians would drop their private health insurance under the Federal Government's plan to cut the 30 per cent rebate for high-income earners, a study shows. An Australian Health Insurance Association analysis of Federal Budget figures, industry data and market research revealed hospital cover was likely to be dropped by nearly 20,000 in SA and 241,000 nationally. Almost 60,000 South Australians and about 728,000 across Australia would downgrade their cover.

The research also found more than 60,000 South Australians and about 774,000 people nationally were likely to drop their general treatment (ancillary) cover. The Government announced planned changes to the rebate – which cut it back for individuals earning more than $75,000 a year and couples earning more than $150,000 – in its budget on May 12.