Why should child care workers subsidise Griggs's private health insurance?

Wednesday, 15 February 2012

Senator Trish Crossin has today hit back at claims that means testing the Private Health Insurance Rebate (PHIR) will be bad for Territorians.

"The Gillard Labor Government will no longer subsidise the wealthiest Australians as they pay their private health insurance premiums," said Senator Crossin.

Singles earning $83,000 or less, such as people working in the community services sector, and families earning $166,000 or less will not be affected by the changes.

The rebate is then tapered, with a single having to earn $129,001 and families having to earn $258,001 before they are no longer eligible for the rebate.

"89% of private health insurance holders living in Darwin and Palmerston will not be affected by this change at all," said Senator Crossin

"Most people will keep their private health insurance cover, so this is not expected to put any extra pressure on the public health system and no significant impact on Territory household budgets.

"It is unbelievable that the Member for Solomon thinks taxpayers on low and middle incomes – such as child care workers, who often can't afford private health insurance themselves – should subsidise the private health insurance of Australians on very high incomes.

 "We need to make sure that every health dollar is being spent in the best possible way, to make sure we can invest in new treatment, new medicines and new technologies.

"The Private Health Insurance Rebate is the fastest growing areas of health expenditure. Funding the private health insurance of those on high incomes is not the best way to use health money."

Commonwealth Treasury modelling estimates that 99.7% of private health insurance policy holders retain their cover.

The AMA President, Dr Steve Hambleton, stated in a press release dated 13 February that AMA analysis of the Government's modelling has come to similar conclusions. The press release can be found here: http://ama.com.au/node/7550.