Labor has revealed an alarming new plan to drastically increase private health insurance premiums for millions of pensioners and families, many on low incomes.
Shadow Health Spokesperson Catherine King confirmed Labor’s plan to completely remove the private health insurance rebate on all low cost policies.
This plan will drive up the cost of premiums for over six million Australians who have low cost private health insurance policies.
This follows a similar revelation by Bill Shorten in January where he refused to maintain the private health insurance rebate.
Labor’s plan to scrap the rebate will mean an increase in the cost of private health insurance by $1080 for an average family product and $540 for an average singles product.
The private health insurance rebate provides a discount to Australian families, on average by 27 per cent, and up to 35 per cent for many pensioners.
Labor clearly can’t be trusted on private health insurance.
Pensioners in particular can’t trust Bill Shorten, as this follows his recent policy attack on their investments.
Over two million Australian pensioners and retirees hold and value private health insurance products.
Of Australia’s 13 million private health insurance members, three quarters are on incomes less than $90,000 per year and rely on the rebate:
• One quarter of all people with PHI (26.92%) have an annual income under $30,000
• Almost half of all people with PHI (47.21%) have an annual income under $50,000
• More than three quarters of all people with PHI (77.14%) have an annual income under $90,000.
In contrast, the Turnbull Government is committed to supporting the 13 million Australians that have taken out private health insurance by providing a discount on their policies through the private health insurance rebate.
Our package of real reforms has delivered the lowest annual premium change in 17 years, far lower than every year under the Rudd and Gillard governments.
We understand every single dollar matters, that’s why our policies are focused on lower premiums.
Once more Bill Shorten is trying to take the money out of the pocket of pensioners and families.