The deepest cut of all

In April this year, the Federal Government announced a cut to the higher private health rebate for Australians aged 65 years and older.

The decision caused angst and angered many. It also united the National Seniors Australia (NSA) community more than any issue we’ve collectively fought.

The Private Health Insurance (PHI) Rebate exists to help cover the cost of individual’s premiums. A higher rate has applied for people over 65 to encourage older people to take up and maintain private cover to reduce cost to the public system.

Many people don’t even know they get a higher rebate because it is automatically applied to health insurance, but they will notice when this rebate is taken away and premiums increase more than usual on 1 April 2027, as planned.

Together, with your support, NSA has been pushing back on this proposal, gaining both public and political support along the way.

In recent Senate Estimates, our report on private health insurance was referenced as one of the few sources of public data on PHI take-up among older people. NSA was also referenced in the House of Representatives, just prior to the winter break.

But this is only the beginning!

Before the proposed cuts were announced, NSA had already undertaken research and raised your concerns around private health affordability and value. We have been calling for an independent productivity review of the private health system for many years, which is disappointingly looking more and more like it is on life support.

Long before the government’s announcement, NSA also called for an increase (not a decrease) in the rebate for lower income seniors in previous budget submissions.

We wanted to ensure that those least able to afford PHI could retain this important cover.

Fast forward to May 2026, and when the Treasurer, Jim Chalmers, confirmed the government’s plan to cut the rebates in the 2026 Federal Budget, NSA was well equipped with the necessary evidence to call on parliament to reject the proposal, which we swifty and boldly did.

“The cuts to private health rebates for older Australians came as a shock to many,” NSA Chief Executive Officer Chris Grice says.

“Even before these cuts were announced, NSA research showed older Australians were struggling to afford private health insurance with some ‘scrimping and saving’ to keep it.

“Many older people have paid premiums for decades, in some cases their whole working lives. They were already struggling to afford it and doing everything possible to keep it,” he says.

“The cuts could push many to downgrade their cover, potentially leaving them underinsured when they need it most. And at the same time, add pressure to an already stressed public system.”

Helping to strengthen our case against the proposed cuts have been your views and your experiences, which you have continued to generously share with NSA.

Mary Parsissons, an 83-year-old pensioner, has been paying PHI since she began working as a nurse at 16 years old.

Mary, like many, values the choice private health cover provides but wonders how she’ll manage increased out-of-pocket expenses on top of increased other expenses that continue to squeeze her limited budget.

“I’ve been paying private health insurance for almost 70 years. I’ve always valued it and the choice of hospitals and doctors it’s provided—it’s always been there when I’ve needed it,” Mary says.

“I’ll do what I can to keep it, even with the rebate cuts, but this will mean cuts to other necessities. It’s worrying because it’s getting increasingly difficult to keep up with cost-of-living pressures—something will have to give.”

It’s not only pensioners who are concerned about the impacts.

Retiree Anne Drane, 78, has also been paying private health for decades and relies on it heavily to assist with ongoing medical expenses for a chronic condition.

“My health condition is permanent and requires regular medical appointments. Without private health cover, I would become reliant on the public system. This could delay my treatment and add another person to a system that is already buckling under the strain.

“Letting go of private health and losing the security it provides isn’t a decision anyone would take lightly, but it is a decision some older Australians may be forced to make.”

Experiences like Mary and Anne’s reinforce the need for an independent review of the private health system and strengthen both our argument and our resolve to fight the proposed cuts.

This is why, when parliament resumed after winter break in August, NSA was in Canberra to take your concerns directly to federal parliamentarians, from all sides of politics including Minister for Aged Care and Seniors Sam Rae, Liberal Senator Anne Ruston, Greens Senator Allman-Payne, and Independent Senator Jacqui Lambie as well as Independent MPs Rebecca Sharkie, Monique Ryan, and Labor Member for Dickson Ali France—to list just a few.

Again, drawing upon your views and experiences, we put forward our case for a more balanced approach—one that protects older Australians, maintains access to timely care, and avoids unintended costs elsewhere in the system.

Our position was well received ahead of the inquiry into the legislation to remove the higher rebate, which NSA and many of our members contributed to. The final report is due in October.

As we know and continue to hear, PHI is complex, inequitable, but incredibly valued by policy holders—especially for older Australians who have paid premiums for decades and who are at a stage of life when having that insurance gives certainty, choice, and much needed peace of mind.

NSA will continue to call on parliament to reject this proposal by continuing to be involved in important political discussions and leading equally important public conversations.

How NSA is advocating against the cuts to PHI:

1. Ongoing meetings with federal MPs and Senators to put forward your views directly—we have the ear and support of fierce opponents of the PHI cuts within parliament.

2. Participating in national print, online, and broadcast media interviews—garnering public support and adding public pressure to the political work we’re doing behind closed doors.

3. Showing likely impacts on current policies and helping people to prepare for the cuts via our Private Health Insurance Rebate cut estimator.

4. Developing a petition to give people another way to show their support for our campaign—there’s weight and power in numbers!

5. Working with an alliance of organisations, including private hospitals and insurers, to oppose the change culminating in a joint letter to the Prime Minister and Minister for Health.

You can help spread the word by sharing our Facebook post or sharing our estimator with your friends and family. Don’t forget to ask them to sign our petition while they are there.