Senate removes private health rebate bill from agenda

The government's proposed cuts to private health insurance rebates cannot proceed through the Senate in their current form after the Greens, Coalition and independent senator Jacqui Lambie backed a motion removing the bill from the parliamentary agenda.

The proposal would reduce rebates for Australians aged 65 and over from April 2027. The government expected savings of A$3 billion over four years to fund aged care commitments, with about A$1.6 billion of the forecast savings coming from pensioners.

Health Minister Mark Butler said the government intended to introduce the same legislation again. He criticised the Senate's decision, arguing that parliament had recognised the need to finance better aged care services. Shadow Health Minister Anne Ruston urged him to abandon the proposal.

Greens leader David Shoebridge said his party supported reducing private health rebates but would only back the bill if pensioners were excluded. The government had been relying on Greens support because the Coalition opposed the legislation.

States and territories, along with aged care and private health industry representatives, have argued the changes could increase pressure on public health services. Many health economists have supported the policy, saying the effect would be minor and the funding could be used better elsewhere.

Butler had cited an estimate that 44,000 people would drop their cover. Health department analysis disclosed under Freedom of Information laws forecast a cumulative total of 78,000 by the decade's end. Butler said the department considered the smaller estimate the most reliable.