Rise of rebate uncertainty
January 20, 2012
THE Government’s plan to cut
private health rebates is in jeopardy
after Independent MP Andrew Wilkie
said he would block the legislation.
The Government announced its
plans to reduce the thresholds on
eligibility for the blanket 30%
rebate in the first half of 2011.
The plan would see a reduction of
the rebate for singles earning over
$80,000 and couples who together
earn more than $160,000 per
annum, a move which the
Government has touted would save
$1.9 billion over four years.
The cut back plans have however
not been received well from all
quarters, with the coalition vocally
opposing the changes, whilst
Wilkie’s blockage could prove the
final death knell in the proverbial
legislative coffin.
MEANWHILE the Department of
Health has this week released a
report which it says proves that
means testing won’t hurt the
private health insurance industry.
According to the report, the
private health industry increased its
revenue by $1.25b last year,
representing an 8.8% increase on
the previous year to a total of $15.4b.
In addition, the report found that
benefits paid out to members
increased by 7.6% and that 45.3%
of Australians were covered by
private hospital insurance at the
end of the last financial year.
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