Executive summary

The Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 proposes to remove the age-based uplift to the Private Health Insurance Rebate for Australians aged 65 and over from 1 April 2027. The Government estimates the change will affect around 3.36 million Australians and is intended to improve intergenerational equity in the rebate while redirecting savings to aged care.

Catholic Health Australia (CHA) acknowledges these objectives but is concerned that the impact of the change will fall disproportionately on low-income retirees, older and frail Australians, aged care residents, and people living in regional and rural communities. CHA is also concerned that the reform could shift costs to public hospitals, aged care and private hospitals, particularly regional facilities, without the full impacts having been adequately assessed.

In this submission, CHA recommends that the Government complete further analysis of the Bill's distributional, regional and public hospital impacts before it proceeds, consider protections for Australians least able to absorb the change, and assess the measure as part of the broader private health reform process. CHA also recommends an independent post-implementation review to identify any unintended impacts of the reform