Senate blocks government plan to cut pensioner health insurance rebates
The Senate rejected the government's plan to strip health insurance rebates from people 65 and over.
The Senate defeated the government's attempt to strip higher health insurance rebates from older Australians. Opposition parties, the Greens and crossbenchers voted on Wednesday to ditch the bill from the Senate agenda.
The measure would have removed the two-tier rebate system, which currently gives better subsidies to people 65 and over. The highest subsidies go to those 70-plus.
The government said the move would save about some 3 billion over four years. It would redirect the money into aged care.
But the proposal drew fierce criticism, with warnings that many low-income pensioners would drop their private cover. Health Minister Mark Butler said the government would try again on Thursday.
He was willing to discuss changes. The Coalition cited figures showing 78,000 older people would likely abandon private insurance by 2029-30.
This was nearly double the government's public estimate.
- 1.2 million
- Older policyholders protected
- 78,000 by 2029-30
- Projected insurance abandonments
- 3 billion dollars
- Proposed four-year budget saving
Why it mattersIt blocks a significant hit to pensioners' healthcare costs. It protects the private insurance base for older Australians, affecting 1.2 million current older policyholders.
AustraliaOlder Australians keep their current health insurance subsidies; the government must find alternative savings or rethink its aged care funding strategy.
✓ Claims checked against the source. checked 2 h ago
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