Important update regarding changes to the PHI rebate

In a recent announcement, the Federal Minister of Health and Ageing outlined changes to the Private Health Insurance (PHI) rebate for individuals aged 65 and over. 

Like others in the sector, we were surprised by this announcement and are continuing to seek further information from the Government about these changes.  

Proposed Changes 

The Government has announced its intention to remove the higher age-based PHI rebate rates for people aged 65 and over, with implementation proposed from 1 April 2027 (subject to legislation). If introduced, this would align the rebate percentage for Australians aged 65+ with the rate that applies to the general population within the same income tier. The rebate would remain income-tested, but the rate would no longer be affected by age.  

Peoplecare understands that this change, if it proceeds, would have a financial impact on many of our members. We know how important private health insurance is in supporting your health, choice and peace of mind, and we want to be very clear that our members’ interests are of the utmost priority. 

What we’re doing 

We are actively advocating against this proposed change through Members Health Fund Alliance, ensuring the voices and needs of our members are clearly represented and communicated to the Government. We believe any decision of this nature must properly consider the impact on policyholders. 

What you can do now? 

No action from you is required at this time, as no changes have been made to your cover. As soon as we receive more details, we will communicate with impacted members. We will update information in regard to this change here. 

We understand this news may be concerning, and we’re committed to keeping you informed and advocating strongly on your behalf.