Private health rebates should be means tested – and here’s why

Government to test private health insurance rebate for high income earners means the bill is scheduled for debate in the House of Representatives on Thursday. Package of around $ 2.8bn per year to the public coffers and will help to get back to budget surplus. But three of the six cross benchers support for the bill needs to pass.

Public Health Associate Professor Peter Sainsbury why the proposals' call for support of cross-benchers, but rather to argue that private health insurance, consumers will pay for better personal care of your pocket:

Currently, anyone who takes out private health insurance get a refund on your premium is 30% government.

Under the proposed plan, health insurance, earning more than $ 80,000 and couples earning more than $ 160,000 with 10% to 20% of singles would be exempt. Singles and couples earning $ 124 000 over $ 248,000 will no longer be eligible.

Medicare levy surcharge bill, high-income earners who do not have private health insurance, including the fines.

Independent of the regional areas, some of which are concerned about the impact on a lack of doctors. If the bill passes, we see many people are likely to drop their private health insurance?

The simple answer is no.

However, consumer responses to price increases when you consider, you will always just ask customers what they can judge the potential result - you need to see what happened historically.



This is especially likely given that the higher income brackets, people who are most likely to get private health insurance as it will lose the return.

Greens support the private health insurance rebate means test, but the Medicare levy surcharge for high income earners with private health insurance rebate to resist.

And overload takes a bit of extra taxation, the amount of the refund means test is almost trivial compared with the savings.



I agree with the Greens, but it's all just pretend.

Increased pressure on public hospitals to finish off?

There is little if any evidence to indicate that this test does not completely eliminate the exemption means - any public hospital emergency department, ward, or will put more pressure on elective surgery.

Services provided in private hospitals are like that often enough the public hospitals for the services provided are different. Most private hospitals provide a very limited range of services, especially as you move away from inner metropolitan areas. Outer metropolitan, regional and rural hospitals provide services, the simplicity (at least the specific care processes that require specialized equipment and at least) and cherry-pick based on profits.

It is important to note that private health insurance uptake does not necessarily affect private hospitals. People can still have private health care and many people do - without private health insurance.

People who for ten or twenty years at $ 2,000 or $ 3,000 a year - plenty to get your money back. They have a hip replacement that costs $ 2,000 to $ 10,000, but overall they better keep their premiums and their wallets to pay for private hospital treatment will be.

If you would like to see phased out private health insurance in the long term?

Private health insurance health system is a parasite. In a perfect world, self-funded private health care is a well funded, comprehensive public health care system will be an optional extra on top.

Eliminate the possibility of private health insurance in Australia is remote. But we could improve the private health insurance industry.We currently see no real alternative because consumers are confused by the different options.

If the government wants to promote private health care, bypass the insurance companies and private health care providers (private hospitals and medical specialists) should communicate directly with. The government has provided and will give some control over the quantity and quality of care.


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