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Private health insurance rebate: the sting is in the administration


Deloitte health insurance leader, Actuaries and Consultants’ partner Stuart Rodger has warned that unless the Federal Government can keep the administration as simple as the current system, there is the real potential for an administrative nightmare caused by the Federal Budget’s private health insurance announcement.

“A complex administrative regime could mean the Government fails to achieve its target of retaining 99% of all current members in the health insurance pool.

“A simplified approach on the other hand would insure that the figures and thresholds announced by the Treasurer are likely to ensure that most high earners will in fact retain some form of health insurance, even though they lose the benefit of rebates," he said.

“I would hate to see everybody, regardless of their income having to prove to their health insurer that they were entitled to the rebate before they could receive its benefit,” Rodger said.

“If lower-income health insurance customers have to supply their income details to insurers to get the rebate taken off their premium, many may object.

“If this were the case, the unintended consequences could impact many who were not meant to be affected by these changes,” he said.

Rodger suggested that a simplified approach such as using tax returns to trigger the administration for those singles earning above $75k and couples/families earning over $150k would succeed in leaving the other members unaffected.

“Simplifying the administration for working families is the key to the Federal Government achieving their goal,” he said.

Last Updated: 


Stuart Rodger
Deloitte Australia
Job Title:
Partner, Actuaries & Consultants
Tel: + 61 2 9322 5022
Louise Denver
Job Title:
Director, Corporate Affairs & Communications
Tel: + 61 2 9322 7615, +61 414 889 857




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