Shadow Minister for Seniors Bronwyn Bishop has denounced Health Minister Tanya Plibersek’s announcement of the Labor Government’s third attempt in 2012 to launch the means testing of the private health insurance rebate as a premeditated assault on the Australian elderly. 

 

Elderly citizens with private health insurance stand to be affected the most by the new legislation because of their fixed income and the existing threat of rising costs of living, particularly electricity costs.

Over 50% of the 10.3 million citizens with private health insurance survive on a less than $50,000/year incomes per household, with 3.4 million among them surviving on less than $35,000/year incomes per household. 

The introduction of means testing, it is predicted, will force 1.6 million people to opt out private health insurance. The resulting fallout from increased premiums will lead such financially struggling sectors as senior citizens to crowd the public health system.

Private Healthcare Australia’s head Dr. Michael Armitage confirmed that Labor’s means testing would mean a 10% increase in premiums on top of other premium increases that cover those who quit.

Mrs. Bishop said this development “is not a new concern,” but an attempt that has “twice failed since the Labor Party came to Government in 2007.” She said the Coalition’s commitment to oppose the means testing of the private health insurance rebate would remain.