The 57,600 residents covered by private health insurance will be hard hit by Julia Gillards decision to break another promise and means test the private health insurance rebate.
Federal Member Scott Buchholz said every person in Wright with private health insurance will pay more because of this legislation.
Because of the means test, it is estimated 1.6 million Australians will drop private hospital cover over the next five years and another 4.3 million Australians will downgrade their level of coverage. This will have a dramatic impact on the costs of everyone who remain in private health insurance. The loss of younger members is estimated to increase all premiums by 10 per cent.
The means test provides that singles earning over $83,000 and families over $166,000 will pay up to $1,000 more.
The Governments decision to means test private health insurance will also have a significant impact on the public hospital system.
It is estimated that 845,000 new procedures will be forced onto the public hospitals system putting further pressure on waiting lists.
Along with the carbon tax this represents another major cost on the forgotten Australians and the latest act of betrayal by the Prime Minister.
Whats worse is this ridiculous suggestion from the Government that private health insurance is some sort of playground for the rich.
Half of all Australians have private health insurance. More than 5.5 million of them have an annual household income of less than $50,000.
We are not talking about the Packers or the Murdochs here. We are talking about older Australians who may be sick and do not wish to put themselves through the stress or the uncertainty of treatment through the public health system. We are talking about young parents with kids, trying to make sure their families are covered if the worst should happen. These are people who have made sacrifices in order to look after their own future and their own wellbeing.
For the Government to argue that these people are living so high on the hog that they can afford to cop a bit more financial pain shows just how out of touch they really are.
Mr Buchholz said none of the government’s means test-induced savings will be spent on alternative health programs.
They’re just propping up a government that otherwise would not be able to produce a budget surplus, he said.
Local households are paying a heavy price for Labors waste and incompetence and its failure to manage the budget.