COTA Australia’s submission argues that the Bill would deepen an existing structural inequity in Australia’s health system. While increasing private health insurance costs for older Australians, it would do nothing to address the factors that make older people more reliant on private cover to access timely, planned care.
COTA Australia’s position draws on its June 2026 survey of 2,029 older Australians, findings from the State of the Older Nation (SOTON 25), and published Australian Institute of Health and Welfare data.
Together, these sources show that older Australians are more likely to live with chronic and complex health conditions, require more frequent planned healthcare and manage rising costs on fixed or constrained incomes. The age-based private health insurance rebate recognises these circumstances and helps many older people maintain affordable cover. Reducing the current rebate would force some older policyholders, particularly those on the Age Pension or modest fixed incomes, to downgrade or abandon their insurance and rely on already stretched public hospital waiting lists.
The views of older Australians are clear. COTA Australia’s June 2026 survey found overwhelming opposition to removing the higher age-based rebates, with respondents citing concerns about affordability, healthcare access and financial security. Their responses reinforce the practical importance of the rebate in helping older Australians maintain choice, access and peace of mind.
At its core, the Bill raises important questions about fairness and access. Private health insurance provides many older Australians with timely treatment and greater choice at a stage of life when healthcare needs are often greatest. The age-based rebate helps make this access affordable. Its removal would disproportionately affect older people and weaken an important support for ensuring planned healthcare is available according to need, rather than ability to pay.
COTA Australia also highlights broader concerns about the affordability, transparency and value of private health insurance for older Australians. It calls on the Committee to consider these issues as part of a wider reform agenda and support measures that put consumers first, ensuring private health insurance remains accessible, affordable and responsive to older Australians’ needs.