The Australian government’s plan to eliminate the additional private health insurance rebate for Australians over 65 is encountering resistance in parliament, with the Greens indicating they will not support the measure in its current form. This opposition raises doubts about the legislation’s passage through the Senate, despite backing from a Labor-majority Senate committee.

The proposed change is aimed at redirecting approximately A$3 billion towards aged care services. While the Senate committee majority endorsed the bill as a means to boost funding for the aged care system, both the Greens and the Coalition issued dissenting reports expressing significant concerns.

The Greens highlighted the potential financial strain the policy could place on low-income older Australians, including pensioners and part-pensioners. Their dissenting report emphasized that many in this demographic may struggle to afford increased private health insurance premiums, which could force them to reduce coverage or cut back on essential household expenses such as heating, cooling, and food. The Greens urged the government to reconsider the measure and negotiate changes, with reports suggesting they may push to exempt pensioners from the rebate removal.

Coalition health spokeswoman Senator Anne Ruston criticized the policy as a “penalty” on aged pensioners, noting that around 3.2 million older Australians will be affected, including about two million living on incomes below A$37,000 per year. She described the plan as forcing long-time private health insurance holders to choose between maintaining coverage and meeting basic living costs.

Private Healthcare Australia CEO Rachel David also warned about the impact on older Australians living on fixed incomes. Citing data from the Parliamentary Budget Office, she estimated that approximately 1.5 million age pensioners would be affected by the policy. David expressed concern that many individuals who have maintained private health insurance for decades—encouraged by previous government incentives—would face increased costs at a time when they are most likely to require medical services. She warned that the removal of nearly A$3 billion in rebates could lead some older Australians to forgo private health coverage altogether.

The government has yet to indicate whether it will amend the legislation in response to these concerns. The pushback from both the Greens and the Coalition signals a challenging path ahead for the proposed changes as lawmakers weigh the balance between aged care funding and the financial wellbeing of older Australians.