COTA Australia’s supplementary submission to the Senate Community Affairs Legislation Committee strengthens our call not to proceed with removing the additional age-based private health insurance rebate. New evidence from a survey of 1,332 COTA Australia supporters aged 65 and over shows that higher premiums would force many older people into difficult choices.
One third of respondents said they would cancel or change their insurance. Almost half would keep their current cover, but most of that group said they would need to cut spending elsewhere. More than half of respondents nominated health or aged care expenses as an area they might cut, while 41% nominated food or groceries and 68% social activities.
The findings show that keeping private health insurance is not evidence that higher premiums are affordable. Pensioners face particularly stark trade-offs and are much less able than self-funded retirees to absorb extra costs. COTA Australia urges the Committee to reconsider the proposed rebate changes and ensure reform reflects the circumstances of older people who would bear the cost.