Means test defeat would blast budget.
THE government faces a hole of about $3.4 billion over four years in its budget if its proposed means test on the private health insurance rebate is rejected.
The legislation, yet to be introduced, is struggling with Queensland independent Bob Katter hitting out against it yesterday and New South Wales MP Tony Windsor saying he would vote against it if the proposal was in its previous form.
Their comments come a day after Tasmanian independent Andrew Wilkie expressed severe doubts.
Mr Windsor said he was having talks with the government next week. His comment opens the possibility that he might be more open minded if there were changes to the proposal.
A spokesman for Health Minister Nicola Roxon left open the possibility of compromise, saying the government would work closely with the crossbenchers to negotiate the legislation's passage.
The potential saving from the measure is much higher than the $1.9 billion estimate, for a little shorter period, when the legislation was put to Parliament unsuccessfully last term. The new saving estimate was disguised in the budget, and the government refuses to confirm it until it brings the legislation back.
Mr Katter said he was ''scared silly of people moving out of the private health system into the public health system, which is already collapsing in Queensland''. It was necessary to try to ensure people who were able to afford it stayed in the private health system, he said.
The legislation was defeated twice in the Senate last term but with the hung parliament it will stand or fall in the House of Representatives. The Coalition is opposed so its fate depends on the six crossbenchers - the government needs four for a majority.
In a big effort to get the numbers, the government is preparing information for all the crossbench House members about the impact of the means test on their electorates.
The spokesman reassured the country independents that ''the vast majority of people with private health insurance in regional Australia are below the thresholds at which the means test will come into effect - and therefore they won't be affected.''
Mr Wilkie told Parliament this week he was ''yet to be convinced by the government that means testing the health insurance rebate is the most sensible thing to do''.
Yesterday he said he was waiting for the government to give him a detailed breakdown on the private health care take-up in his seat of Denison and modelling on the effect on the public healthcare system.
The Greens MP Adam Bandt will vote for the legislation. Independent Rob Oakeshott has voted both for and against. West Australian National Tony Crook has yet to declare a position.
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