The Federal Government and the Greens have struck a deal that will see the formation of a $165 million package to provide dental services to low income earners in return for support of the government’s health care means testing legislation.

 

After winning support from key independents Andrew Wilkie and Rob Oakeshott, the Federal Government has passed the legislation through the lower house.

 

The measure will enforce means testing the private health insurance rebate, with reductions in rebates for a single person earning more than $80,000 or families over $160,000.

 

The legislation will see that singles earning over $129,000 and families on $248,000 not receiving any of the rebate.

 

Federal Health Minister Tanya Plibersek downplayed claims that the legislation would negatively impact on a large number of Australians.

 

“Nearly eight million private health insurance policy holders won’t be affected by the changes at all,” Ms Plibersek said.

 

“It is not fair for low and middle income earning Australians to be subsidising the health insurance of households with incomes of more than $250,000 a year,” she said. 

 

The Federal Opposition has expressed concerns that the legislation will force people from the private system, leading to an overburned public healthcare system.

 

"It is estimated that if this legislation is passed, 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," Federal Opposition Leader Tony Abbott said in a statement.

 

The money for the dental care package will be raised from an increase in the Medicare Levy surcharge for people on higher wages who do not have private health care.

 

Greens Senator Richard Di Natale backed the plan, while urging the government to split its private health reforms so that private health insurance rebate and the Medicare levy surcharge could be voted on independently.

 

“One of the key goals of health policy is to deliver healthcare to those who most need it at the lowest possible cost,” said Greens’ health spokesperson Dr Richard Di Natale.