High income earners face paying more for private health insurance if proposed legislation passes.
Health Minister Tanya Plibersek has introduced a bill to start means-testing the health insurance rebate in a bid to add $2.4 billion to the Government’s coffers.
The rebate, set up by the Howard Government, means a 30 per cent cut in the cost of health insurance for anyone who chooses it, regardless of income.
Under the new scheme, individuals earning over $83 000 and couples earning over $166 000 would have their rebate docked by up to 20 per cent.
2SER’s Sam Buckingham-Jones spoke to Michael Armitage, CEO of the Australian Health Insurance Association, about his reaction, and the future of private health insurance.
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