The rebate cut that could push 78,000 older Australians out of private cover

If your parents are over 65 and have private health insurance, this proposal is worth knowing about. It isn’t law yet.

The federal government wants to wind back the private health insurance rebate for Australians aged 65 and over. It says the change would make rebates “fairer” and save about $3 billion to spend on aged care.

Who it hits

More than 3.2 million older Australians would be affected, and about 2 million of them live on less than $37,000 a year. The health department’s own analysis, released under Freedom of Information, expects 44,000 people to drop their cover in 2028–29, rising to about 78,000 the following year. The department says those estimates are uncertain.

Will it happen?

Not yet. The Coalition says it will block the bill in the Senate, so the government needs the Greens. The Greens won’t support it as written and are looking at changes, such as exempting pensioners.

What to do now

Nothing changes today. If your parents rely on private cover, it’s worth knowing what they pay and what the rebate is worth to them, so the family isn’t caught out if the bill passes.

Update, 14 October: the Senate has pulled this bill off its agenda. The government says it will bring it back. Read the latest →

Source: ABC News, Stephanie Dalzell, 12 October 2026. This is general information, not financial advice.