Jacqueline Maley
February 11, 2012



THE Opposition Leader, Tony Abbott, has pledged to fight government plans to means test the private health insurance rebate ''every step of the way'' but refused to commit to rescinding the measures if elected to government.   

Asked whether he would get rid of the means test if elected to government, Mr Abbott said: ''We're going to fight it. Ask me that question if we come to that situation.''   

The government this week introduced to Parliament legislation to means test the private health insurance rebate, a policy that will increase health costs for wealthier families by up to $1300 a year.


The means testing measures have twice been rejected by Parliament, but the government is understood to have secured the numbers to finally push them through with the expected support of the crossbenchers Rob Oakeshott and Andrew Wilkie, and the Greens' Adam Bandt.   

The Health Minister, Tanya Plibersek, is selling the changes as an equity measure but the opposition says the government is just desperate to make savings to return the budget to surplus in 2012-13 as it has repeatedly promised it would.

The changes are estimated to deliver $2.4 billion to government coffers, a much-needed boost to the budget bottom line.   

The opposition health spokesman, Peter Dutton, also refused to be drawn on whether the Coalition would abolish the measures if elected. ''I think we can actually do better if Labor gets this through,'' he said on Adelaide radio.

''I've actually got some exciting things to do in private health insurance to make it more popular.''

An abolition would effectively return the system to the status quo but cancel the $2.4 billion saving.

The government and opposition are also at odds over the number of people expected to drop out of private health insurance if the means test measures are passed.

According to Treasury modelling, the changes will cause 0.3 per cent of private health insurance holders, or 27,000 people, to drop out of private health altogether and fall back on the public health system.

According to the modelling, all of the drop-outs would be from the first tier of those eligible for the means test, singles on $83,000 to $96,000 a year (excluding super) and families on $166,000 to $192,000 a year.

This is because these people are on a low-enough income that they will not be slapped by the Medicare levy surcharge if they drop out of private health insurance, but a high-enough income to be affected by the means test.

But, a Deloitte report commissioned by Private Healthcare Australia estimates that 175,000 people from the ''tiers'', as in those affected by the rebate changes, will drop out of private hospital cover in the first year alone.

Over the following four years, a total of 1.6 million consumers would drop their private hospital cover, including those who are still able to claim the full 30 per cent, because overall premiums will have risen. All these consumers would be pushed onto the public hospital system.

The government disputes the report. Ms Plibersek's office said that, according to historical data, price fluctuations do not cause people to drop out of private health cover.   

The same report says that the changes will cause private health insurance premiums to rise 10 per cent above what would otherwise be expected, affecting all consumers.

Read more: http://www.smh.com.au/opinion/political-news/abbott-silent-on-coalition-plans-for-health-means-test-20120210-1skut.html#ixzz1m3ZIa0YP

Yes of course you will fight it Mr Abbott.  Its the liberal way is it not?.  Always look after the well off, and the big end of town.   

longweekend58 wrote on Feb 11^th, 2012 at 5:55pm:

Right!!!!!!!!!!!!!!!!!!!!!!

GoddyofOz wrote on Feb 11^th, 2012 at 6:26pm:


Gillard also shoudlnt surprise us since her word is obviously worthless.

Of course it should be means-tested, no question.

perceptions_now wrote on Feb 11^th, 2012 at 8:17pm:



Of course the mining tax will also provide revenue to support our aging population if Abbott does not scrap it and the NBN is set to return a sizable dividend once it has paid back the cost of its implementation if Abbott does not scrap it and means testing health rebate will provide much needed revenue if Abbott does not scrap it!!!

The ALP should also look at the concessions to superannuation that also cost the taxpayer billions of dollars and is growing....It would be cheaper to scrap the superannuation concessions all together and give everyone the pension instead of letting them squirrel away millions tax free!!!

Quote:


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Why would the big end of town worry about a rebate of a couple of thousand dollars per year? These people wouldn't even bother with premiums - they'd have enough assets to cover treatment with a credit card.

It would be the struggling families who'd be cutting down on essentials in order to pay health insurance knowing, that Medicare can only stretch so far -  hospitals are chockablock and insurance can make the difference between life or death, or between suffering the pain of osteoarthritis for a couple of years before  A BED IS AVAILABLE!

And even this bed might become unavailable because some drunk had caused a major road accident!

longweekend58 wrote on Feb 11^th, 2012 at 7:34pm:

SL