Australia news
Australian Government passes means testing legislation
Australia’s lower house has passed legislation to introduce means-testing of rebates for private- health insurance.
Under the legislation, people earning more than A$83,000 a year would face a means test for the 30 percent rebate. The bill, which needs the support of the upper house Senate to become law, would also increase the surcharge paid by higher-income earners without private cover using the publicly-funded Medicare service.
The measures are expected to save the government A$2.4 billion over three years, according to the Australian Broadcasting Corp.
Private Healthcare Australia, has said means- testing the rebate could force people out of the private system and into the public sector.
“Private Healthcare Australia has consistently cautioned that means-testing the 30% Rebate will force people out of the private healthcare sector and into the public system, and it will force premiums up for those who remain in private cover.”
Source Business Week/ Private Healthcare Australia