Proposed Private Health Insurance (PHI) rebate changes
What’s happened?
The Federal Minister for Health and Aged Care recently proposed the removal of the age-based increase in the PHI rebate for Australians aged 65 years and over.
This proposal is yet to be legislated, however if it passes Parliament in its current form, it will see the rebate based only on income, not age.
What does this mean for over 65s?
In effect, the current higher rebate levels for over 65s would be reduced to the standard rebate levels available to those under 65.
If this proposal is legislated, it is expected to come into effect 1 April 2027.
We believe the proposal to remove this rebate carries significant unintended risk for our members and are working alongside the Members Health Fund Alliance (MHFA) to actively lobby for a better approach to reform.
What can I do?
The MHFA has created a dedicated website explaining these proposed changes, with links to how you can contact your local MP and voice your concerns, along with an online petition you can sign.
Our Fund
We are the only health fund made for doctors, their families, and the medical community and apply a member centric approach to everything we do.
We’re proud so many doctors have chosen us to protect themselves and their families with our quality hospital and extras health insurance products.
Our Top Cover Gold cover offers unique premium hospital cover, paying a medical gap benefit based on the AMA list of medical services and fees. Prime Choice Gold cover provides comprehensive hospital cover for all inpatient services eligible for Medicare benefits with no exclusions and restrictions.
Furthermore, we advocate for clinical independence and freedom of choice, with no restrictive preferred provider networks for our extras cover - we believe you know best who should treat you.
Contact us
If you have any questions on how this proposal may impact you, please contact our Member Services Team by email info@doctorshealthfund.com.au or by calling 1800 226 126 Monday to Friday (excluding NSW public holidays) from 8:30am to 6:00pm (NSW time).
Currently, most people with PHI receive a rebate from the Australian Government to help cover the cost of their premiums. The PHI rebate is income tested and is also affected by the age of the oldest person covered by the policy. It applies to hospital, general treatment and ambulance policies. Read more here.
No, the rebate is not being removed for over 65s. The Government has announced proposed changes to the PHI rebate that would:
- Remove the current age-based rebate for those over 65
- Align the rebate for those over 65 with the existing rebate levels for those under 65
Not in every case. If legislated, the proposed changes would still be income tested and will depend on individual circumstances. As this proposal has not been legislated, we are unable to provide more specific guidance at this state.
There is no change to your current premium because of this proposal. If the proposal is legislated, some members aged 65 or over may see higher out of pocket premiums over time due to changes in the rebate.
If this change is legislated, we expect it to come into effect from 1 April 2027.
The impact will depend on your income tier and level of cover. As the proposal has not been finalised, we can’t confirm any individual impact at this stage.
Not in every case. The proposed changes are related to the government age-based rebate, rather that the type of cover you hold.
We are working alongside the Members Health FundAlliance to actively lobby for a better approach to reform.
We’re also monitoring the proposal closely so if it is legislated, we can understand and communicate its potential impact to our members.
As we age, our healthcare needs may become more complex, making private health insurance increasingly important for seniors.
This is where we come in.
Choosing comprehensive health cover can help reduce unexpected out-of-pocket expenses and offer you peace of mind when it matters most – by helping access timely treatments, specialist care, and advanced medical technologies.
Our Top Cover Gold cover offers unique premium hospital cover, paying a medical gap benefit based on the AMA list of medical services and fees. Prime Choice Gold cover provides comprehensive hospital cover for all inpatient services eligible for Medicare benefits with no exclusions and restrictions.
Furthermore, we advocate for clinical independence and freedom of choice, with no restrictive preferred provider networks for our extras cover - we believe you know best who should treat you.
