Labor’s private health rebate cuts to hurt 53,275 people in Wide Bay
19th May, 2011
More than 53,000 people in the Wide Bay electorate will face higher health insurance premiums under a Labor-Greens plan to means test the private health insurance rebate, putting the overloaded public system under even greater stress, Federal Member, Warren Truss said today.“Almost 40,000 adults living in Wide Bay hold private health insurance, with 53,275 people including children, covered under those policies,” Mr Truss said.
“Each one of those policy holders, not just those in higher income brackets, will be hurt under the Labor-Greens plan to means test private health insurance rebates if it is allowed to proceed. Means testing the rebate means that premiums will rise directly by up to 40% for some.
“But if the incentive to take up private health insurance is removed, premiums will rise even higher for everyone as people dump their insurance entirely, leaving the remaining policy holders with much higher premiums to pay.”
Mr Truss said maintaining the private health insurance rebate is important to relieve pressure on the public hospital system.
“The rebate helps to reduce public hospital admissions. Any person who drops their private health insurance cover then relies on the public health system, adding to the long waiting lists which already exist. Deloitte’s estimate that the Government will save $1.9 billion by its changes to the rebates but the cost to the public health system will rise by $3.8 billion.
“The Government knows that the Queensland public hospital system is overcrowded and overburdened after years of mismanagement by the Beattie and Bligh Labor Governments. Cutting the private health insurance rebate would push the system beyond breaking point and have serious consequences for the community.”
It is estimated that 5.6 million Australians with health cover earned less than $50,000 a year and around one million of those had incomes of less than $24,000.
“Many people in the Wide Bay region would fit into that income bracket, including pensioners and self funded retirees who go without other things so they can keep their health insurance,” Mr Truss said.
“This move demonstrates yet again how out touch Labor is for wanting to punish households and add to the rising cost of living by making health insurance more expensive. The Government should be tough on itself and control its own wasteful spending rather than targeting families and pensioners.”
“This is another Labor broken promise. Before Labor was elected they promised in writing that they would not means test the health insurance rebates. Since being elected, Labor has previously tried to phase out the 30 per cent private health insurance rebate for people earning over $75,000 and couples earning over $150,000. On both occasions, the Coalition defeated the proposal, and we will continue to oppose any move to means test the private health insurance rebate.”
