Federal Health Minister Mark Butler has stood firm on plans to scale back private health insurance rebates for older Australians, pushing back against state warnings that the move will trigger a surge in public hospital admissions. Source: Daily Telegraph.
Following high-stakes talks at Friday’s Health Minister’s Meeting, state representatives delivered a stark warning to the Commonwealth that the proposed changes to reduce the private health insurance rebates would further clog up hospitals across the country.
Modelling from NSW Health revealed that as many as 80,000 people aged 65 and over will cancel or downgrade their private health insurance policies under federal Labor’s proposed changes to age-based rebates, which would place more strain on emergency departments and other public health services.
The NSW modelling also projected 23,000 extra surgeries and 12,000 additional patient bed days into hospitals in this state alone, handing NSW a $40 million to $100 million bill and potentially worsening an already critical “bed block” crisis.
“We raised, as state and territory, concerns for modelling that we’ve been able to do that we think will have an impact on our respective hospital systems,” NSW Health Minister and chair of health ministers Ryan Park said.
Mr Butler said he recognised the cost-of-living impact to those over the age of 65, but said it would save a lot of money that could then be put back into reducing the pressure on hospitals.
“So this is not a decision I’d particularly have liked to have made in ordinary circumstances, but this is one of those difficult choices we have to make,” he said.
Mr Butler said he would be open to considering modelling other than what is being followed by the Albanese Government, but urged his colleagues to think about the benefits.
“For those who are opposed to it, including my state minister colleagues, I say, where else are we going to get that $3 billion to invest in the beds that they’ve just been arguing for here?
“These are about choices.”
Catholic Health Australia on Friday also released analysis, finding that more than 200,000 older Australians would drop or downgrade their hospital cover if the age-based health insurance rebate was removed. CHA said it would have a financial impact on not-for-profit Catholic hospitals of up to $415 million a year.
FULL STORY
Minister stands firm on health rebate cuts despite fears of hospital chaos (By Harrison Finlay, Daily Telegraph)
Regional private hospitals to feel the brunt of over-65’s rebate changes (Catholic Health Australia)
RELATED COVERAGE
Commonwealth stares down states on controversial private health changes (ABC News)
