Currently, older Australians receive a higher rebate to help offset the increasing cost of healthcare and private health insurance as they age. Australians aged 65–69 can currently receive a rebate of around 28%, while those aged 70 and over may receive more than 32%, depending on income thresholds. Under the proposed changes, these higher rebate levels would be reduced to the standard base rebate available to Australians under 65.
For many older Australians, this could mean paying significantly more for private health cover each year. Industry groups and healthcare organisations have raised concerns that increased costs may lead some people to downgrade or cancel their cover altogether, potentially placing additional pressure on the public hospital system.
The Proposed Changes
Right now, the Government helps cover the cost of private health insurance through the Private Health Insurance (PHI) rebate.
The rebate is higher for people aged 65–69 (around 28%)
And higher again for people aged over 70 (around 32%)
This extra support helps make cover more affordable as health needs increase
The Government has announced proposed reductions to the private health insurance rebate that would:
Remove the current means tested rebate for those over 65
Replace this with a lower rebate rate
How it Could Impact Me
Higher premiums
Reduce cover
Delay treatment/long public wait times
If you are under 65 there could still be impacts to you as a result of the increased strain on the health system causing:
- Higher premiums across the board over time
- Longer waiting times in the public system if more people rely on it
- Reduced access to private hospitals if demand falls and services are cut
- Less choice about where and when you receive treatment in the future
What can I do
What Members Health is Doing
Members Health is actively engaging with Government, Parliamentarians and stakeholders to ensure the impacts of this proposal are fully understood.
Our focus is on:
- protecting access to private healthcare for older Australians;
- ensuring the impacts on lower‑income members are properly considered;
- understanding behavioural responses and system‑level consequences; and
- avoiding unintended pressure on public hospitals and regional health services.
Members Health is also supporting member funds with clear, consistent and evidence‑based information to assist engagement with members and stakeholders.