Pensioners hit with $1.6 billion cost from health insurance rebate cuts
Federal cuts to the private health rebate for over-65s will cost pensioners about $1.6 billion of the $3 billion in forecast savings.
The Albanese government is winding back the private health insurance rebate for people aged 65 and over, banking about $3 billion to spend elsewhere in aged care. New analysis from the Parliamentary Budget Office shows roughly half that saving, about $1.6 billion, will be clawed back from pensioners and older Australians on lower incomes.
More than three million people aged 65 and over will have to pay hundreds of dollars more each year for their private health cover from next April. About 1.5 million of these are age pensioners, who are least able to absorb the cost.
The government says the move will fund aged care improvements, but it has faced intense pressure from states, health insurers, aged care groups and the political opposition. Independent modelling suggests about 44,000 Australians will drop their private cover entirely.
Health economists say the impact on hospitals would likely be small.
- $3 billion
- Total forecast savings
- $1.6 billion
- Clawed back from pensioners
- More than 3 million
- Affected older Australians
- About 1.5 million
- Age pensioners holding private cover
Why it mattersPensioners on fixed incomes will face a real hit to their pockets during a cost-of-living crisis. Some may abandon private cover, pushing more people onto an already stretched public system.
AustraliaOlder Australians will pay significantly more for private health insurance from April 2027, forcing budget choices for retirees and possibly increasing demand on the public health system.
✓ Claims checked against the source and corrected before publish. checked 11 d ago
