Labor tries to pass controversial insurance bill again

Sweeping private health insurance changes affecting pensioners have been resurrected in parliament, sparking fury from political rivals who previously booted the bill.

The proposal would wind back the rebates people over 65 receive on their private health cover from April next year, saving the government about $3 billion over four years.

The plan would affect many pensioners as the rebate reduction would be calculated based on income in the same way it is for other Australians.

The bill has been slammed by the coalition and the crossbench, whose members say Labor is using pensioners as a piggy bank for its own wasteful spending.

They teamed up on Wednesday to discharge the government's bill from the Senate notice paper, effectively booting it from parliament.

But Labor vowed to reintroduce it, and has done so at the earliest time possible.

Re-tabling the same bill on Thursday morning, Health Minister Mark Butler said it showed responsible budgeting, along with providing dignity and care for older Australians towards the end of their lives.

"The government is committed to moving ahead with this bill," he said.

The unusual move has been met with a fiery response from across the political spectrum.

Liberal Senator James Paterson warned ahead of the reintroduction it showed the government's "contempt for the Senate", which would be returned in kind.

"So it should be in this case, because this is a particularly cruel cut - a cut of $3 billion to older Australians who are taking out private health insurance, and in doing so, taking pressure off the public system," he told News24.

"These are people who don't have a lot of spare cash, but value their health."

Older Australians had "done the right thing" by paying their taxes but they were being punished because Labor couldn't control its own spending, Independent Senator Jacqui Lambie told reporters on Thursday.

"Wake up, do the hard yards up here instead of doing easy targets like our elderly," she said.