Tasmanians from across the state today joined Shadow Minister for Health and Aged Care, Senator the Hon Anne Ruston, at a community roundtable in Launceston to share their concerns about the Federal Government’s proposed changes to the private health insurance rebate for over 65s.
The roundtable, hosted by Tasmania’s leading not-for-profit health and wellness organisation St Lukes, provided an opportunity for members to speak directly to the Senator about how the proposed changes would affect their healthcare choices and future access to medical treatment.
St Lukes CEO Paul Lupo said the forum was a critical step to ensuring its members were heard following overwhelming feedback received, with more than 3,600 responses to a member survey on the proposed changes.
“Our survey found 96 per cent of respondents were concerned about the changes, 71 per cent said the proposal would affect their ability to maintain private health insurance, and 90 per cent lacked confidence they could access the care they need through the public health system,” Mr Lupo said.
“The people around the table today have spent decades doing what governments have encouraged them to do – taking responsibility for their healthcare and maintaining private health insurance throughout their working lives.
“Many are now living on fixed incomes and are deeply concerned about what these proposed changes would mean for their ability to keep their cover at the very time they need it most.”
Mr Lupo said the issue extended far beyond individual policyholders and posed broader risks for Tasmania's health system.
“Tasmania already has an ageing population, high levels of chronic disease and significant pressure on both public and private healthcare services,” he said.
“Private health insurance plays a critical role in supporting hospital capacity across the state. If more older Tasmanians are forced to downgrade or abandon their cover, the impact will be felt right across the healthcare system through increased demand, longer wait times and reduced access to care.
“This is not simply a private health insurance issue – it is a whole-of-system issue for Tasmania.”
Shadow Health and Aged Care Minister, Senator the Hon. Anne Ruston, said the Coalition did not support the Government’s proposed cuts to over 65s health insurance rebates and hoped to block the proposal in the Senate.
“What we heard today were real stories from people who are worried about the affordability of healthcare and the future of their private health cover,” Senator Ruston said.
“It’s so important that the experiences and concerns of older Australians are part of the national conversation on this issue and we have that opportunity through the Senate committee process examining the proposal.
“These are Australians who have paid their taxes, planned responsibly and made financial sacrifices over many years to maintain private health insurance.
“Many told us they are concerned they may no longer be able to afford the level of cover they rely on, and that raises serious questions about the impact on both individuals and the broader health system.
“The evidence and personal experiences shared by Tasmanians today reinforce the need for the Senate to carefully consider the real-world consequences of these changes, particularly for older Australians living on fixed incomes.
“I will ensure the concerns raised at today’s roundtable form part of the broader discussion as examination of the legislation progresses and hope to convince the crossbench to join with the Coalition to block these cuts.”
Tasmanian Minister for Health, Mental Health and Wellbeing, Bridget Archer, said the Tasmanian Government was deeply concerned by the proposed cuts.
“It's no secret that Tasmania has the oldest population in the nation and slugging older Tasmanians with higher private health insurance fees will simply force them to downgrade or leave private health insurance altogether,” Minister Archer said.
“This will significantly impact our public hospitals by driving increased demand, particularly in emergency departments and elective surgery waitlists.
“While I acknowledge the Australia Government’s claim they’ll put more money into aged care, older Tasmanians shouldn’t be slugged with higher fees to pay for it.
“It’s time for the Australian Government to go back to the drawing board and reconsider these changes that will Tasmania worse off.”
St Lukes said it would continue advocating on behalf of its members and encouraged Tasmanians to have their say as the proposal progresses through the parliamentary process.
The Senate Committee reviewing the proposal is seeking public submissions by 21 August 2026. More information can be found here: Protect affordable private health insurance for older Australians - Private Healthcare Australia (PHA)
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Media contact: Jacquie Ray | Timmins Ray Public Relations | 0429 683 779