The Federal Government needs to urgently review its plan to abolish higher private health insurance rebates for over 65s following growing fears older Australians will drop their private health insurance and place greater pressure on the public health system, COTA Australia says.
COTA Australia Chief Executive Officer Patricia Sparrow said research conducted by COTA Australia backed other research which shows that seniors are looking to drop their private health insurance cover if the Federal Government pushes ahead with its planned changes.
A survey of COTA Australia members found that 82 per cent opposed the government’s plans to axe the higher private health insurance rebate for older people, 89 per cent are concerned about what the changes will mean, and more than a third are already planning to downgrade or cancel their cover.
The survey showed many older Australians are concerned about the impact the move will have on the health and wellbeing of older Australians, and the increased pressure it would put on the public health system for all Australians.
“Older Australians are deeply concerned about what these proposed changes will mean, not only for their health and wellbeing and their own finances during a cost-of-living crisis, but also for Australia’s health system more broadly,” Ms Sparrow said.
“Many people are telling us they simply won’t be able to justify keeping their private health insurance if these changes go ahead.
“If older Australians leave private health insurance in significant numbers, that demand doesn’t disappear. It shifts to the public hospital system, creating longer waiting times and more pressure for everyone. The system needs to be looked at as a whole.”
Ms Sparrow said any changes to private health insurance need to recognise both the financial realities facing older Australians and the role they play in maintaining the health system.
“One in four older Australians is living in poverty. This proposal risks making private health insurance unaffordable for many people who have worked hard to keep their cover throughout their lives.
“Many older Australians have paid private health insurance premiums for decades, including during the years when they were younger, healthier and making relatively few claims. They helped sustain the system then because they expected it would be there when they needed it most.
“Now, just as they’re more likely to rely on that cover, they’re facing higher premiums, rising out-of-pocket costs and proposed changes that will make private health insurance even less affordable.
Ms Sparrow said the current debate raising questions about private health insurance broadly.
“The discussion around the rebate change has surfaced a deeper concern about whether Private Health Insurance represents genuine value for money for older Australians,” Ms Sparrow said.
“Many older people are facing higher premiums, rising out-of-pocket specialist costs, confusing products and now, proposed changes to the private health insurance rebate that will make cover even harder to afford.
“The Government should be looking carefully at the impact these planned changes are likely have on Australia’s health system broadly, and carefully at private health insurance itself and the role it plays in the system.”
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722