Managers Network

• ACOSS Media Release

  16 February, 2012

  ACOSS urges parliament to means test the private health insurance rebate
                                                                                                                                  
  The peak body for Australia’s community services, ACOSS, has today reiterated its call for support to means test the private health insurance rebate.
   
  “As a voice for the needs of people affected by poverty and inequality, we strongly support means-testing the private health insurance rebate”, said Dr Cassandra Goldie, ACOSS CEO. “Nearly two-thirds of those without insurance say they simply can’t afford it. Why should all taxpayers fund a rebate when only 52% of the population has private health insurance?
   
  “We know that affordability is a key factor in whether people take out private health insurance or not. We also know that many people on low incomes struggle to make their household budgets meet health care costs in the face of rising costs of living like housing, food and utilities.
   
  “Asking people to foot the bill for a health insurance rebate when they might not be able to afford to fill a prescription is simply a further kick to people on lower incomes struggling to meet costs.
   
  “We also know that private health insurance is significantly more common for residents of capital cities compared with those outside them. Beyond affordability, the rebate does nothing to alleviate the structural barrier to affordable and timely health care in rural and regional areas with no or little access to general practitioners, specialists and after-hours care.
   
  “ACOSS has long supported better targeting of tax arrangements, and this is clearly a rebate that runs counter to the principle of a fair and equitable tax system. The rebate is an inefficient use of Federal funds when health expenditure needs to be targeted on improving health and access to services for those missing out.”
   
  In comments made today ACOSS points out that, in the year to September 2011, private health insurance providers made a $1.2 billion profit (before tax). Yet in 2010-11, private health insurance cost the Government $4.7 billion. Furthermore, contrary to popular wisdom, the rebate has failed in its aims to relieve pressure on the public health system.
   
  “While government funding for health must prioritise improving access to services and reducing inequalities in both access and outcomes, the private health insurance rebate does neither. Means-testing the rebate is a crucial step to reducing inequalities in our health system, leaving us room to improve health overall,” Dr Goldie says.
   
  Media Contact: Fernando de Freitas 0419 626 155
   
  Fernando de Freitas
  Media and Communications Coordinator
  Australian Council of Social Service (ACOSS)
  m | 0419 626 155
  p | (02) 9310 6209
  e | fernando@acoss.org.au
  Follow us on Twitter! @ACOSS