The Greens have accused the Federal Government of making some older Australians pay more for private health insurance to help fund an aged care system that Labor itself has been forced to repair.
Greens spokesperson for older people Senator Penny Allman-Payne said the Government was effectively shifting costs between different groups of older Australians.
“Labor is choosing to take money from pensioners to help pay for running repairs to its catastrophic aged care reforms,” Senator Allman-Payne said.
The proposed private health insurance changes would remove the additional rebate currently available to Australians aged 65 and over, with the rebate instead determined by income regardless of age. The Government says the change will raise about $3 billion over four years, with the savings directed towards aged care.
Under the current system, the rebate is around 24 per cent for people under 65, 28 per cent for those aged 65 to 69 and 32 per cent for people aged 70 and over.
The Government argues the existing system is unfair because two people on the same income can receive different rebates simply because of their age. It says older Australians will continue to receive a rebate based on their income, while the savings can be used for other health and aged care priorities.
Senator Allman-Payne said even a few hundred dollars in additional annual costs could be significant for pensioners and part-pensioners already managing household expenses.
“Ageing shouldn’t be a struggle for survival. Older Australians deserve security, dignity and access to great healthcare,” she said.
Greens health spokesperson Senator Jordon Steele-John said the proposal came at a time when many people were already struggling to afford healthcare.
“People are doing it tough right now, and too many people are already putting off seeing a doctor because they just can’t afford it,” he said.
The Greens have warned that higher premiums could lead some older Australians to downgrade or drop their private health insurance, potentially increasing pressure on public hospitals.
The Government’s own modelling estimates about 44,000 people aged 65 and over could leave private health insurance as a result of the change.
Opposition health spokesperson Senator Anne Ruston has also previously attacked the proposal, arguing that older Australians could be forced to choose between maintaining private health cover and meeting basic household costs.
“Older Australians who drop their cover will not stop needing scans, chemotherapy or surgery. They will simply join the back of the public hospital queue,” Senator Ruston said.
The proposal now faces a difficult path through the Senate. A Labor-dominated parliamentary inquiry has recommended the legislation proceed, but the Coalition has already indicated it will oppose the changes and the Greens have said they will not support the bill in its current form.
That leaves the Government needing to negotiate with the Greens or other crossbench senators if it wants to secure the numbers to pass the legislation. Labor holds 30 of the Senate’s 76 seats, meaning it cannot pass the bill on its own.
For the Greens, that gives their opposition to the rebate changes added significance. The party is arguing that pensioners should not be asked to pay more for private health cover to help fund an aged care system that it says Labor is having to repair.
Whether the Government can convince the Greens to change their position, or whether it will need to make changes to the legislation, could determine whether the proposed $3 billion aged care funding measure actually becomes law.
