The Federal Government looks likely to its private health means testing legislation through the Parliament, promising to win the government $2.4 billion in savings.

 

After winning support from key independent Andrew Wilkie, the Federal Government appears to be likely to push the legislation through the lower house.

 

The measure will enforce means testing the private health insurance rebate, with reductions in costs 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.