Private Health Insurance Rebate News

A new survey by Choice has revealed that many families and high income earners remain confused about the upcoming means testing of the private health insurance rebate.

According to the consumer group, it will cost less to take out basic hospital cover than to pay the government's Medicare Levy Surcharge (MLS) in most cases when means testing begins.

National health fund provider Australian Unity has spoken out against the federal government's decision to means test the private health insurance rebate.

According to chief executive officer of healthcare Amanda Hagan, the effect of the legislation on lower income earners and those with a chronic disease has been underestimated.

Federal health minister Tanya Plibersek has suggested that the private health insurance industry is capable of surviving the industry reform introduced by the government last week.

Appearing on the ABC's political program Insiders (February 19), Ms Plibersek stated that private health insurance will remain profitable, despite the impact that means testing the 30 per cent rebate could have.

The leader of the opposition has vowed to scrap the private health insurance rebate means testing "as soon as we can".

Speaking to Macquarie Radio yesterday (February 15), Mr Abbott announced that he was committed to restoring the full rebate - once financial circumstances permitted the Coalition government to do so.