FED: Democrats propose means testing rebate

AAP General News (Australia)
12-08-1998
FED: Democrats propose means testing rebate

CANBERRA, Dec 8 AAP - The Australian Democrats today proposed means-testing the planned 30
per cent private health insurance rebate and spending the estimated $800 million savings on
public health.

Democrats leader Meg Lees unveiled the compromise today in an attempt to convince the
federal government to accept amendments to the controversial plan, which appears unlikely to
pass the Senate without changes.

Senator Lees said the government's proposal amounted to robbing the public system to put
money into a private insurance product.

"We are not going to support it in its current form," she told reporters.

"This is a compromise package where the government gets half of what it wants, going into
private health insurance, and we get half what we want, and that is money going directly into
the public system."

Under the Democrats plan, half of the estimated $1.6 billion cost of the rebate would go to
families on annual incomes up to $50,000 and singles on incomes up to $30,000.

These income levels are less generous than the existing rebate, but the Democrats say
no-one in receipt of a rebate will lose the benefit they now receive.

The rebate, though, would not cover ancillary services, such as dental care and payments
for sporting activities.

It would be subjected to an independent review in two years, and the private health funds
would have to meet performance outcomes negotiated with the government, addressing in
particular the matter of out-of-pocket expenses incurred by private insurance members.

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KEYWORD: INSURANCE LEES

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