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Nearly 80,000 older Australians could drop their private health insurance under proposed government rebate changes.
Apparently, retirement now comes with a new hobby: checking which household expense you can still afford.
But first, an important clarification: these changes are proposed, and the legislation still faces a Senate battle.
The government wants to remove the additional age-based rebate for people aged 65 and over. Income-based rebates would remain.
Labor argues that support should depend on income, and that roughly three billion dollars in savings could fund better aged care.
That deserves consideration. Taxpayer money should deliver the greatest benefit possible.
But a saving in Canberra can become another bill at the kitchen table.
Health department modelling projects about 78,000 older Australians would leave private cover by 2029–30.
The government has repeatedly cited 44,000, but that estimate relates to the previous year.
So these aren’t simply competing guesses about the same date. They describe different stages of the projected impact.
Unfortunately, government announcements rarely come with someone saying: “Please turn to the next page for the less cheerful number.”
And projections are uncertain. They aren’t a cancellation receipt from 78,000 customers.
Critics worry that people dropping cover could increase pressure on public hospitals. Supporters argue the savings could achieve more through aged care.
My view? Show us the whole calculation.
What happens to pensioners’ budgets? What happens to hospital demand? And when will the promised aged-care improvements arrive?
Because “better care eventually” is difficult to put into this month’s direct debit.
The Coalition opposes the bill, while the Greens want changes.
Whatever compromise emerges, it should protect people with the least room to absorb another expense.
We need affordable private cover and a strong public system.
A budget saving deserves applause when it improves care.
When it merely moves the bill, that’s accounting with a forwarding address.
Craig Hill is a Brisbane-based author, journalist, teacher, business consultant and social justice campaigner. He is the General Manager of the Australian Book and Language Studio.
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