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  • 7 weeks ago
The states and territories are demanding the federal government ditch the proposed private health insurance rebate changes, amid new warnings it will increase the strain on public hospitals. Health ministers have gone into a meeting in Sydney armed with a list of concerns, which also included the rapidly growing number of stranded aged care patients in public hospitals across the nation.

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00:01New South Wales has done some modelling that they could see in their public hospitals up
00:06to an extra 23,000 surgeries a year as a result of these proposed changes to the private health
00:14insurance rebate. They're also saying that across their state alone, there could be 80,000
00:20older Australians who either ditch their cover or reduce it as a result of what Mark Butler,
00:26the federal health minister is proposing. So to sort of walk you back through that, the federal
00:31government thinks it can save around $3 billion over four years by changing this rebate and
00:37investing that into aged care. So essentially, if you're 65 and over, you get a bigger rebate than
00:44someone who's on the same income as you, but is younger than you. So the government wants to make
00:49it kind of all equal across age brackets. So, you know, everyone's getting the same rebate, but it
00:55could see some older people paying kind of roughly $240 more a year. So as you can imagine,
01:01there's been a lot of pushback in response to that, including from state and territories,
01:06because they're worried this is then going to bleed into the public hospital system,
01:10like we're hearing from New South Wales, and put extra pressure on them. So going into this
01:16health meeting this morning, interestingly, the federal government is kind of facing this
01:20double whammy over this situation today, because there's also a Senate inquiry looking into this,
01:25and a lot of people are very critical of it. The COTA, which is like one of the peak bodies
01:31representing older people, they're concerned that of these 3 million Australians that will be paying
01:36higher fees, 1.2 million are pensioners. So worried about what that will mean for them,
01:42and also putting that extra strain on the public hospital system. And then Catholic Health Australia,
01:47too, is saying there could be hundreds of thousands of older people around the country that will give
01:54up their health insurance or reduce it. So a different number than the one the federal government's
02:00putting forward of around 44,000 people giving up. They're saying when you take in everyone that's
02:04going to reduce their cover, it is a lot more. Saying too, from Catholic Health Australia, that it could
02:10even lead to the closure of a public, sorry, of a private hospital in New South Wales that they flag
02:17in their submission to. So getting heat from the Senate inquiry and from ministers around the country,
02:22Kath, so it'll be one to watch. But the federal government has been insistent that this change
02:26is for the better to make it fairer and to invest that money elsewhere.

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