Pensioners left in tears over Australia’s controversial health insurance rebate changes

Pensioners have been left in tears over a controversial plan to overhaul Australia’s private health insurance sector.

The government wants to dial back the rebate Australians aged 65 and over get for their private health insurance cover from April, 2027.

The changes are expected to hit seniors hard and put added pressure on public hospitals.

WATCH THE VIDEO ABOVE: Pensioners in tears over health insurance changes

For 80-year-old Stephanie Thuresson, lunch with mates at Yarraville Bowls Club has become a much-needed distraction from health insurance anguish.

“It actually gives me panic attacks and anxiety,” Thuresson told 7NEWS.

Parliamentary research reveals the health insurance rebate changes for over 65s will cost pensioners $1.6 billion.

“It’s unfair, it’s inequitable and I think this piece of legislation should be shelved,” Independent MP Monique Ryan said.

Independent Senator Jacqui Lambie also criticised the move, saying: “Not even I have the courage to go after older Australians, especially our pensioners who are already doing it tough. Go find your savings elsewhere.”

National Seniors Australia said reducing the rebate could increase out-of-pocket premiums by more than $1000 a year for a couple with gold cover, and “force tens of thousands of seniors to drop or downgrade their insurance”.

For 78-year-old Sue Peel, the changes will cost $600 a year and her heating.

“If we cover up with electric blankets we’re better than sitting in front of heating that’s costing a fortune,” Peel said.

But the government won’t budge. The changes will fund aged care reforms.

“These are one of the hard decisions we have to make if we’re going to deliver to older Australians the dignity and care that they deserve,” Health Minister Mark Butler said.