The Federal Parliament must reject proposed private health insurance rebate changes or risk putting even greater pressure on millions of pensioners and Australia’s already stretched public health system, COTA Australia says.
The call comes as the House of Representatives debates the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026.
COTA Australia Chief Executive Officer Patricia Sparrow said the Federal Parliament, including the Government, Opposition and the Cross Bench, must use its power to stand up for pensioners and the health system as a whole.
“The Federal Parliament needs to show that it is committed to standing up for older people, and the health system as a whole,” Ms Sparrow said.
“The Parliamentary Budget Office modelling released this week makes increasingly clear how much of the burden will fall on age pensioners, while our own research shows many older Australians are already questioning whether they can afford to keep their private health insurance.
“Making private health insurance more expensive risks pushing people to downgrade their cover or leave the system altogether.
“The impact won’t just be felt by those individuals – it risks putting even more pressure on public hospitals and waiting lists that are already stretched.
“Older Australians and their families are worried about what these changes will mean for them personally, but they are also deeply concerned about the flow-on impact for Australia’s health system.
“The Federal Parliament should not push ahead and simply hope those consequences don’t eventuate. The stakes are too high.”
Ms Sparrow said it is particularly concerning that Parliament was being asked to consider the changes before a current Senate inquiry examining the bill had completed its work.
“Parliamentarians are being asked to make a decision before the Senate inquiry has even finished examining the impact these changes could have,” Ms Sparrow said.
COTA Australia told the Senate Inquiry that COTA’s research found 82 per cent of Australians opposed removing the higher rebate for people aged over 65, while more than one in three said they would consider downgrading or cancelling their cover if the changes went ahead.
“We support the broader work the Government is undertaking on private health insurance and its role in Australia’s healthcare system, but these particular changes risk disproportionately affecting older Australians on modest and fixed incomes,” Ms Sparrow said.
“Many older Australians have worked hard to maintain their private health insurance throughout their lives. Increasing the cost now risks putting that cover beyond the reach of people who have done everything they can to hold onto it.
“We need a strong public health system and a sustainable private health system. Making it harder for older Australians to maintain their private cover risks undermining both.”
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722