Axing the higher private health insurance rebate for older Australians risks hitting 1.2 million pensioners with higher costs and putting even greater pressure on already stretched public hospitals, COTA Australia says.
The warning comes as COTA Australia appears before the Senate inquiry into the proposed private health insurance changes, and ahead of a meeting of Australian Health and Mental Health Ministers. Ministers are expected to discuss a range of crucial issues, including private health insurance rebates and stranded patients, at the meeting on Friday.
“Older Australians, health professionals and advocacy organisations have all raised serious concerns about these changes. Ignoring that weight of concern would be a significant risk,” Ms Sparrow said.
“We now know an estimated 1.2 million pensioners will be directly affected. These are people living on fixed incomes, many of whom are already struggling with significant cost-of-living pressures.
“Making private health insurance more expensive risks forcing people to downgrade or cancel their cover, potentially leaving them with less access to the healthcare they need and shifting more demand onto already stretched public hospitals.”
COTA Australia research found 82 per cent of older Australians surveyed opposed removing the higher rebate for people aged over 65, 89 per cent were concerned about the impact of the changes, and more than one in three said they were already considering downgrading or cancelling their cover.
“Private health insurance will become less affordable for people who are increasingly likely to need healthcare,” Ms Sparrow said.
“Older Australians have spent decades paying into private health insurance and want to continue to play their part in supporting the system. They should not be priced out at the stage of life when they are more likely to need it.
“The implications go well beyond household budgets. If significant numbers of older Australians leave or downgrade their private cover, the consequences could flow directly into public hospitals and ultimately affect access to care for everyone.”
Ms Sparrow said attempts to link removal of the rebate with the need to fund aged care presented Australians with a false choice.
“There’s no question aged care needs greater investment and it’s good that the Government has recognised and acted on concerns about clinical care in the Support at Home Program. Older Australians have been calling for a properly funded, high-quality aged care system for years, but Australians should not be asked to choose between properly funding aged care and maintaining affordable access to healthcare. We need to be able to do both.
“State and territory governments have a role to play too, including investing in rehabilitation and transitional care so older Australians aren’t stuck in hospital because the support they need simply isn’t available. The answer to pressure on our hospitals and aged care system is governments working together, not shifting costs from one part of the system to another.”
Ms Sparrow said older Australians have also raised broader concerns about the affordability and value of private health insurance.
“There’s an opportunity to look at whether private health insurance is delivering value for Australians, how it complements the public health system and how we ensure it remains accessible and affordable for the people who rely on it most.”
COTA Australia has launched a public petition calling on the government to fix private health insurance. Sign the petition here.
Media contact: Tamara Kotoyan, 0430 291 890 or Alana Mew, 0419 929 722