As the saying goes - do you want the good news or the bad news first?
The good news is that the federal government will fix aged care by injecting $3 billion dollars to rectify the Support at Home Program and build new aged care homes.
The bad news is that people over 65 will pay for it with a reduction in the private health insurance rebate.
While NSA acknowledges and supports the proposed changes to aged care, it should not come at the expense of older Australians struggling to maintain access to private health. Many of these will be pensioners who don't want to be a burden on the public hospital system.
The investments in aged care include:
- the removal of co-contributions for showering, continence management, and dressing through the Support at Home Program;
- the delivery of 20 additional Specialist Dementia Care units;
- the expansion of the Hospital to Aged Care Dementia Support Program; and
- the construction of an estimated additional 5,000 beds a year.
The savings to pay for these come from a reduction in the higher private health insurance rebate to align with the rate offered to people aged under 65.
The base tier rebate for a person under 65 is currently 24.118% compared to 28.139% for people aged 65-69 and 32.158% for those aged 70 and over.
Keep reading to complete our reader poll below to have your say on this issue.
Cutting the rebate will hurt seniors
NSA CEO Chris Grice said that around 2.5 million Australians aged 65 and older will be shocked by the decision to cut the higher PHI rebate. The impact of this will be significant and could push older people with limited income and savings out of the private health system.
"Some of these people will undoubtedly be pensioners who are struggling to maintain their cover from successive price hikes," Mr Grice said.
"For example, a gold-level hospital policy (couple) costing $9,000 before 1 April would have likely increased by around $900 on 1 April. This will increase by another $800 per year as a result of the rebate reduction for a couple with an income in the base tier.
"Many of these older people would have paid private health for decades. Now, at a time in their life when they really need that insurance - when affordability is paramount - it has been swept from under their feet.
"It is a classic case of 'robbing Peter to pay Paul'.
Recent NSA research shows that private health insurance is one of the top cost of living concerns for seniors.
Separate research by NSA found that older Australians value the peace of mind and control over healthcare PHI provides. Many wish to maintain it, even at great cost to themselves. Could this be the straw that breaks the camel's back?
"The risk for government is that older people drop their private health insurance cover, and place even greater pressure on the public system." Mr Grice said
"State and territory governments are already concerned about the capacity of the public hospital system. While the investment in aged care could reduce the issue of older stranded patients, the influx of older people dropping their private health could ramp up demand.
NSA Health costs campaign
NSA has been calling for reforms to private health for many years on the back of growing concern among older people about the affordability of private health insurance and out-of-pocket costs.
We continue to call on the Federal Government to stop the finger pointing and convene a Productivity Commission review of the private health system to identify the causes of premium increases, rising specialists costs, and increased hospital charges to identify ways to reduce the cost of private health in Australia.
To join our fight against rising health costs, click here .
While you are there, check out our policy recommendations .
Thousands of Australia-wide discounts
Exclusive offers and savings across dining, shopping, gift cards, and more - all in the EAT | PLAY | SAVE app.
Members save 10% on Travel Insurance*
National Seniors members receive a 10% discount on travel insurance policies*.
Financial Information Consultant
Speak to a real person and receive up-to-date information on retirement planning, superannuation, and more!
Branches
Expand your social circle, enjoy social events, day trips, guest speakers, and meet like-minded members.
Exclusive Travel Discounts
Save on tours, cruises, and holidays with exclusive discounts on National Seniors Travel.
Our Generation Digital Magazine
Receive a yearly subscription to Our Generation Digital Magazine.
The Good Guys Commercial
Members enjoy exclusive access to The Good Guys Corporate Benefits. Save on small and large appliances as well as technology.
Advocacy & Research
Your membership directly funds our advocacy and research work fighting issues that affect you.
Competitions
Access exclusive member-only weekly competitions including books, DVDs, CDs, movie tickets and more.
Discounts
In addition to the discounts app, members can save thousands on eGift Cards and other discounted products.
*The discount applies to the total National Seniors travel insurance premium and is for National Seniors Australia members only. Discounts do not apply to the rate of GST and stamp duty or any changes you make to the policy. nib has the discretion to withdraw or amend this discount offer at any time. This discount cannot be used in conjunction with any other promotional offer or discount
National Seniors Australia Ltd ABN 89 050 523 003, AR 282736 is an authorised representative of nib Travel Services (Australia) Pty Ltd (nib), ABN 81 115 932 173, AFSL 308461 and act as nib's agent and not as your agent. This is general advice only. Before you buy, you should consider your needs, the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination (TMD) available from us. This insurance is underwritten by Pacific International Insurance Pty Ltd, ABN 83 169 311 193.
