Australian states raise concerns over changes to private health insurance rebates
Australia’s states and territories are preparing to discuss with the federal government planned changes to the private health insurance rebate system for older people. Some governments are demanding that the plan be abandoned, fearing additional pressure on public hospitals, ABC News Australia reports.
Changes to insurance rebates
Currently, Australians aged 65 and over receive a larger rebate on insurance premiums than younger people with the same income. The federal government plans to abolish the provision introduced under the Howard government, explaining this by the need to ensure greater equality between generations.
From next April, more than 3 million older Australians may pay hundreds of dollars more per year for private insurance. According to the federal government’s estimate, about 44,000 people may give up private insurance because of these changes. The government also forecasts that this will amount to approximately 0.4%.
Modelling by health economists at the University of Melbourne indicates that the impact on hospitals is likely to be minor. At the same time, New South Wales Health Minister Ryan Park said his department’s calculations showed substantially greater risks for the public system. Under the upper end of the forecast, up to 80,000 state residents aged 65 and over may cancel or reduce their level of private insurance. According to the department’s assessment, this could mean more than 23,000 additional operations per year for public hospitals.
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South Australia, Victoria and the Northern Territory have also expressed concerns about the initiative. The governments of Queensland and Tasmania called for the plan to be abandoned entirely. The opposition Coalition has promised to block the legislation in the Senate, so the government will need the support of the Greens, who have not yet determined an official position. Federal authorities insist on implementing the changes, expecting to save $3 billion over four years and direct the funds to other needs of the aged care system.
Patients remain in hospitals
Another topic of the meeting will be the growing number of patients who have been cleared for discharge but remain in public hospitals due to the lack of an appropriate place for further care. According to consolidated data from states and territories, there are more than 3,700 such patients nationwide, compared with around 2,500 in September last year — an increase of about 50% over 12 months.
States run public hospitals, while the federal government is responsible for funding and regulating aged care services. Queensland Health Minister Tim Nicholls said that one patient has been in a state hospital for more than 1,000 days, while more than ten others have remained for over 700 days. According to him, patients with prolonged stays occupy more than 11% of the capacity of the state’s acute-care hospitals.
The federal government has promised to create an additional 5,000 aged care places annually by 2029 as part of a $3.7 billion package. Authorities also referred to a hospital funding agreement that provides an additional $24.4 billion for states and territories over five years.
