Private Health Insurance Rebate Changes are Confusing, Complex and Costly

2009 Budget Response

12 May 2009

“The changes to the private health insurance rebate announced in tonight’s budget are a
clear breach of election promises made by the Rudd Government,” said Michael Roff, CEO of
the Australian Private Hospitals Association. “The changes will lead to a system that is
confusing, complex and costly for those millions of Australians who take responsibility for
their own health care costs.”

“The current system of rebates is simple, transparent and easy to understand. The new
proposals introduce 10 different levels of entitlement or surcharge depending on income
level and age. It will be difficult for people to work out their entitlement and will create a
huge administrative burden both on Government and health funds,” Mr Roff continued.
“The current system works well to provide an appropriate balance between public and private
healthcare. Even the Government concedes these new measures will lead to thousands of
Australians dropping out of private health insurance and as a result, put more pressure on our
already overstretched public hospitals. Destabilising the current balance between public and
private is not just bad policy; it is ultimately unsustainable and therefore irresponsible.”

“The current rebate supports those who take responsibility for their own health care costs. If
the Government is interested in a sustainable system for the future as the population ages,
they should encourage more people to meet their own health care costs and not introduce
impediments to them doing so,” Mr. Roff concluded.

For more information or to interview Michael Roff, contact: Lisa Ramshaw, APHA Public
Affairs Manager on 0413 971 999