A proposal by the Australian Labor government to cut the private health insurance rebate for individuals aged 65 and over has been blocked in parliament. The Greens have stated they will not support the bill unless pensioners are granted an exemption from the new rules.
The proposed changes, which were planned to begin in April 2027, were projected to save the federal budget $3bn. Health department modelling, released under freedom of information laws, indicates that nearly 80,000 older Australians are expected to discontinue their private health cover by 2028-29 as a result of the proposal.
In the Senate on Wednesday, the Greens, Coalition, and crossbench senators combined to block Labor's bill. The bill was discharged from the upper house, meaning it would need to be reintroduced for Labor to proceed. Health Minister Mark Butler stated the government intends to reintroduce the same bill to parliament on Thursday.
The Greens leader, David Shoebridge, said his party would only support the changes if the government excluded 1.2 million pensioners. State and territory health ministers have also criticised the proposal, warning of increased pressure on their public health services.