Controversial changes to private health insurance for over-65s will now head to a Senate inquiry, as the Greens reveal which way they will vote.
Speaking exclusively to The Senior Greens Health spokesperson Jordon Steele-John confirmed the party supported taking the planned legislation, which would reduce the private health insurance rebate for over-65s, to an inquiry.
But Steele-John said the Greens would await "further scrutiny through the inquiry" before deciding on an exact position on the legislation.
Health Minister Mark Butler has defended the legislation as necessary to restoring "intergenerational equity".
"I understand this won't be a welcome decision for many, but it's the right thing to do," Butler said in a speech at the National Press Club in April.
The government's aim is to move the cash to help fund into the aged care system.
Over-65s won't lose their rebate altogether, but the amount they get back will be shaved off.
Karen Martin, 63, is a health professional working in the public sector and said she "understands the importance" of a sustainable health system.
But, the Springhurst resident told The Senior, despite being at a "stage of life" when she is likely to need health insurance most she is unsure if she'll be able to afford it in the future.
"Proposed changes to the rebate are making me seriously reconsider whether I can afford to keep it," Martin said.
"If long-term members who have paid premiums for decades begin abandoning their cover, the result will be greater demand on an already overstretched public hospital system.
"Reducing incentives to retain private health insurance is likely to be a false economy, with the costs ultimately falling back on taxpayers."
Joan Klinkhamer of Chelsea Heights was a carer for her husband for 15 years, before returning to the work force at 70 in aged care mental health.
Now aged 76 she is "desperate" to retire, but after first hand experience, fears when she does she will have to forfeit the insurance she's had for decades.
"Everyday I see the results of the public health system overwhelmed," Klinkhamer said.
"Those of us paying for private health cover may have to give it up and turn to the public health system which is flailing due to demand ... We have played our part including our taxes but are totally ignored by the Government as collateral damage."
Steele-John lashed Labor for "wrong priorities".
"Instead of pitting people against each other, cutting ... cutting support for people, Labor should have been taxing gas exports to fund the essential services we all need," he said.
"They have a choice, take more from older Australians, or introduce at least a 25 per cent tax on gas exports - but they are working for corporate profits not people."
The referral to inquiry was resolved at Selection of Bills in late June and agreed to unanimously by the commitee, made up of the whips from Labor, the Coalition, the Greens, and the crossbench.
Private Healthcare Australia has welcomed the news of the inquiry, but with caution.
Chief Executive Dr Rachel David said every proposed reform should be tested against one fundamental question: "will it help keep private health insurance affordable?"
"Any proposal that increases premiums risks making health insurance less affordable for Australian families," David said.
"If people can no longer afford private health insurance, participation falls, pressure shifts onto the public hospital system, and the sustainability of the entire private healthcare system is undermined."
The Liberals have indicated they will block the changes in the Senate, describing it as a "health tax on pensioners". ensuring the
Therefore the federal government will need at least four crossbenchers to succeed.
One Nation told The Senior they would opposed the changes with leader Pauline Hanson "furious" about the policy.
Senator Jacqui Lambie also said she would oppose the changes.
Independent ACT senator David Pocock said he was still consulting widely before deciding his position.
"We've heard from some older Australians, we've spoken to medical groups and the AMA and others," Senator Pocock told The Senior.
Independent senator Lidia Thorpe told The Senior she would also be closely looking at the findings from the inquiry and evidence presented before making a final decision which way she would vote.
"I encourage anyone with concerns or views about this legislation to make a submission to the inquiry," she said.
"There are legitimate questions about whether billions of dollars of public money going to private health subsidies would be better invested in strengthening our public health system.
"At the same time, any changes need to ensure people are not left in financial stress or unable to access the care they need."
United Australia Party senator Ralph Babet have not responded to repeated requests for comment on the issue.
Greens leader senator Larissa Waters did not respond to requests for comment.
National Seniors said 91 per cent of those they surveyed were opposed to the proposed changes, whereby people aged 65 to 69 would lose four percentage points from their rebate, while over-70s would lose eight percentage points.
The consumer advocacy group has launched an online petition to push the government to reconsider the cuts, which is estimated to affect 3.1 million Australians from 2027 if it gets the green light.
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