44,000 Older Australians Could Lose Private Health Cover Under Budget Change: Inquiry

Health officials said the new policy could affect 3.1 million people, while the government defended it as a fair budget measure.

A Bupa Health Insurance membership card is displayed in Sydney on Sept. 12, 2016. AAP Image/Paul Miller

A federal budget measure that removes extra private health insurance rebates for older Australians is expected to drive 44,000 seniors out of the system, according to government modelling revealed during a budget Estimates hearing.

The change, announced in the latest federal budget, will remove age-based rebate uplifts from April 2027 and move to a system where private health insurance rebates are determined solely by income.