Labor vows to scrap health rebate scheme

August 23, 2004 - 9:56AM

Plans to pay one million older Australians up to $200 in higher rebates for their private health insurance would be scrapped under a Labor government, Opposition Leader Mark Latham said today.

Mr Latham said Labor would keep the 30 per cent private health insurance rebate if it won the federal election but would not extend the scheme.

"We've always said that any extra money in the health system should go into universal access and care," Mr Latham told the Mike Carlton Breakfast Show on 2UE.

"Our position has consistently been (to) keep the 30 per cent but if there's extra money ... for goodness sake put it into universal care, put it into Medicare."

The federal government plans to increase the 30 per cent private health insurance rebate to 35 per cent for people aged from 65 to 69 years and to 40 per cent for people 70 years and older.

The rebates will begin in April 2005 at a cost of $445.5 million over four years if approved by the Senate.

The move will be worth between $100 and $200 in cheaper premiums.

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Mr Latham, who returns to work today after being hospitalised with pancreatitis, said the scheme would only benefit Australians who already had private insurance.

"You can either have universality and Medicare or you can go down the Howard path of user-pays and a second-class safety net.

"I don't think that's what the Australian people want."