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Government Extends Private Health Insurance Rebate

23 August 2004

Elderly Australians will pay less for their private health insurance under a new Government plan.

From April next year, the private health insurance rebate will be lifted from 30 to 35 per cent for people aged between 65 and 69 years.

For those aged 70 and over the rebate will increase to 40 per cent.

The Prime Minister John Howard estimated the higher rebate would reduce premiums by between $100 and $200 a year for people in the two age brackets.

He said: "The government believes that older Australians, particularly those on fixed and low to moderate retirement incomes, deserve a further reward for contributions over the years of their health fund membership."

The cost to taxpayers will be $445.5 million over four years from 2004-05.

Labor said it would not introduce the extra payments if it wins the election, claiming further spending on health should be directed to improving Medicare.



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