PHI rebate update
National Seniors Australia warns Canberra of gross underestimation of the impact of the cut to the higher private health insurance rebate for over 65s.
National Seniors Australia continues to hear your feedback on the proposed cut to the higher Private Health Insurance (PHI) Rebate for Australians 65 and older.
Last week, we took your views and experiences directly to Canberra during the first parliamentary sitting week after the winter break.
NSA has met with close to two dozen parliamentarians and participated in a roundtable discussion led by the Leader of the Opposition, Angus Taylor.
We also led a press conference supported by Deputy Leader of the Opposition, Shadow Minister for Health and Aged Care and Senator for South Australia, Anne Ruston; Independent Member for Mayo, Rebekha Sharkie; and Independent Member for Kooyong, Dr Monique Ryan. Together we called on parliamentarians to reject the proposed cut to the rebate before private health becomes unaffordable.
Thanks to our members who shared their feedback in our recent policy survey, NSA had the attention and ears of all parliamentarians as we presented our findings that indicate a much larger impact from the cut.
According to our survey, 8.4% of older Australians are considering dropping their hospital cover entirely and 12.5% are considering downgrading their cover to manage potential cost increases from changes to the PHI rebate.
As we put forward in Canberra, if these survey results were reflected in the wider population, it could see up to 270,000 people drop their cover and up to 400,000 reduce the level of their cover – much higher than the government estimate. This result strengthens our call for parliamentarians to oppose the cut before private health becomes unaffordable.
“These survey results are concerning,” NSA Chief Executive Officer, Chris Grice, said.
“They show seniors have already dropped and downgraded private health cover in response to price pressures over the past two years, and worryingly, many are considering these strategies in response to the rebate cut. If that happens, the sustainability of both private and public health could be at risk.
“Even before these cuts were announced, older Australians were struggling to afford private health insurance. While some will do anything to keep it and begrudgingly absorb the increase, this might be the straw that breaks the camel’s back, especially for seniors on lower incomes.
“The cut could push people 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 hospital system.
“NSA is especially concerned about pensioners, who we know from our survey are more likely to either drop their health insurance or be forced to make savings elsewhere.
"Long before this cut was announced, NSA questioned the value of private health and recommended an inquiry into the private health system and for the PHI rebate to be increased for older people with limited means. That call has become more urgent.
“We must identify ways to reduce health inflation and improve value for all policy holders. If we can find efficiencies to drive down premiums, this will reduce the cost of the rebate. A win-win situation,” Mr Grice said.
Ms Sharkie said she strongly supported NSA’s campaign and would continue to advocate for older Australians facing higher health and household costs.
“This is a significant hit to older Australians at a time when many are already struggling to make ends meet,” Ms Sharkie said.
“Many older Mayo residents have contacted me to say they simply cannot cut anything else from their household budgets. They are telling me they’re being left with the impossible choice of cutting back on essentials or giving up their health insurance. That’s an appalling choice to have to make.”
Senator Ruston said, "This isn't just a cost-of-living issue, it's a warning sign for the sustainability of our entire health system. Health and aged care are two sides of the same coin, and a short-sighted policy decision in one area can have a dramatic impact across the whole system.
"When older Australians are forced to downgrade or drop their private cover, that pressure doesn't disappear, it lands on our already stressed public hospital system. It lands hardest on rural and regional Australians, who already face the longest waits and the fewest alternatives.
"Older Australians waiting longer for surgeries like joint replacements will only add more pressure to an aged care system that is already making people wait months, if not years, for the care they need."
NSA, together with our parliamentary allies, will continue to lead the charge and fight for an affordable and sustainable private health system. It is in the interest of not only older Australians with private health insurance, but all Australians.
NSA has met with the following politicians to raise your concerns directly to the parliament, and we thank them for giving us the time to put our case forward:
- Mary Aldred MP Federal Member for Monash (VIC)
- Senator the Hon Penny Allman-Payne (QLD)
- Julie-Ann Campbell MP Federal Member for Moreton (QLD)
- Darren Chester MP Federal Member for Gippsland (VIC)
- Senator the Hon Richard Colbeck (TAS)
- Cassandra Fernando MP Federal Member for Holt (VIC)
- Ali France MP Federal Member for Dickson (QLD)
- Matt Gregg MP Federal Member for Deakin (VIC)
- Senator the Hon Jacqui Lambie (TAS)
- Tony Pasin MP Federal Member for Barker (SA)
- Alison Penfold MP Federal Member for Lyne (NSW)
- Henry Pike MP Shadow Assistant Minister for Disability & NDIS & Mental Health Federal Member for Bowman (QLD)
- Leon Rebello MP Federal Member for McPherson (QLD)
- Senator the Hon Anne Ruston (SA) Shadow Minister for Health and Aged Care Deputy Leader of the Opposition in the Senate
- Minister for Aged Care & Seniors The Hon Sam Rae MP Member for Hawke (VIC)
- Dr Monique Ryan MP Federal Member for Kooyong (VIC)
- Rebekha Sharkie MP Federal Member for Mayo (SA)
- Aaron Violi MP Federal Member for Casey (VIC)
- Dr Anne Webster MP Federal Member for Mallee (VIC) Shadow Minister for Regional Health & Regional Communications
NSA will be making a submission to the Senate Inquiry into the legislation, we call on older people to make a submission to the committee raising your concerns directly to strengthen the voice of seniors.
You can read some of our material on the proposed changes on our website:
We also encourage you to sign our PHI Rebate petition to show your support and stay up to date with our advocacy.
A general guide on making a submission is available here.
Further information on the Bill is available on the Parliament website here.
We suggest starting your submission with:
Committee Secretary Senate Standing Committees on Community Affairs
PO Box 6100
Parliament House
Canberra ACT 2600
Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026.
Submissions can be uploaded to the Parliamentary inquiry website by starting on this webpage here. See below for the following steps.
We welcome sharing any submissions you make with NSA, but we won’t be able to lodge submissions on your behalf.
To share your submission with us, please email it to policy@nationalseniors.com.au.
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