St Lukes is calling on Tasmania’s federal senators and MPs to oppose proposed cuts to the private health insurance rebate ahead of this week’s Senate Budget Estimates hearings, warning the changes pose a risk for the state.
The Tasmanian not-for-profit health organisation has released survey data it says backs up those concerns, with more than 3,600 responses from members aged 65 and over.
The survey found 96% of respondents are worried about the impact of the proposed changes while 71% said the changes would affect their ability to keep private health insurance.
90% said they lack confidence in being able to access the care they need through the public system.
Stuart Auckland, 66, a Tasmanian retiree living with prostate cancer, is among those who would be directly affected.
He said he has had private health insurance for more than 40 years and now relies on a fixed income while managing ongoing medical needs and rising living costs.
The proposed changes could increase his premiums by around $250 a year, a cost he says he can’t absorb.
“Being forced to downgrade or opt out would mean I may no longer be covered for procedures I need,” Auckland said.
“In a state like Tasmania, private health insurance is critical. If I were forced to downgrade or opt out, I may no longer be able to access the procedures I need to manage my chronic illness.”
St Lukes CEO Paul Lupo said the impacts would extend well beyond individual policyholders.
“For the year ending December 2025, around 295,000 Tasmanians were covered by private health insurance, supporting 108,909 hospital admissions,” he said.
“Private health insurance funded approximately $405 million in hospital benefits across the state, including more than 15,000 admissions in public hospitals.”
Tasmania’s demographic also adds to the challenge, with around 60% of hospital admissions involving people aged over 65, the highest proportion in the country.
“Reducing rebate support will push demand into an already constrained public system, increasing wait times, limiting access and shifting costs onto the state,” Lupo said.
“This is not simply a private health insurance issue, it is a whole-of-system risk for Tasmania.”
“We are calling on Tasmania’s federal representatives to stand up for their communities and oppose changes that will reduce access to care and increase pressure on an already stretched system.”
