Health Fund Warns Planned Rebate Cut Could Affect 271,000 Members

Health funds have warned a Senate inquiry that a planned rebate cut could lead to substantially higher premiums for older Australians. Insurers must determine next year’s pricing before Parliament votes on the bill, which proposes removing the higher rebate for those aged 65 and over from April 1, 2027. The government anticipates saving approximately $3 billion over four years, with these funds to be redirected to aged care.

• Health funds have informed a Senate inquiry that a planned rebate cut may significantly increase premiums for older Australians.
• Insurers are required to set next year’s prices before a parliamentary vote on the rebate change.
• The bill aims to remove the higher rebate for individuals aged 65 and over starting April 1, 2027, with the rebate then based solely on income.
• The government projects savings of about $3 billion over four years, intended for aged care.
• HBF CEO Lachlan Henderson stated that removing the higher rebate could cost an HBF-member couple in their 70s an additional $493 to $579 annually.