Senate throws out budget plan to remove health insurance top up for older people

The Senate has rejected the government’s controversial budget measure to remove the higher private health insurance rebate for people 65 and older.

The opposition, Greens and crossbenchers on Wednesday passed a motion to ditch the bill from the Senate agenda.

At present older people with private health insurance receive higher rebates than the younger population.

There are two tiers for those 65 and over, with the highest concession going to those aged 70 and over.

The government’s change would remove all age distinctions.

The saving would be worth some $3 billion over four years to the budget.

The government said the money would be redirected into aged care.

The measure has received wide criticism with predictions many low income people would not be able to afford to continue their private insurance.

After the vote, Health Minister Mark Butler said the government would try on Thursday to bring the legislation back.

He said the government was willing to discuss changes.

The Greens are concerned about the hit to pensioners.

New Greens leader David Shorbridge said The Greens will support this Bill to reduce Private Health Insurance rebates with a simple clear amendment, protecting pensioners.

It is plain offensive to see Labor looking for over a billion dollars in savings from cutting rebates to pensioners when they refuse to even consider taxing record gas export profits.

We have a simple message for Labor today, tax gas multinationals not pensioners, then you will get Greens support.