Understanding the Proposed Private Health Insurance Rebate Changes

A clear look at what the updates may mean for you and how we're supporting our members every step of the way.

The Government has proposed some changes to the Private Health Insurance (PHI) rebate. These updates may affect a number of older Australians, including some of our members.

At Westfund, we think you deserve clear, honest information about what's being proposed and what it could mean for your cover. That's why we're here to explain it simply.

Below, you'll find a straightforward overview of the proposed changes, along with a few ways you can share your thoughts if you'd like to.

Proposed rebate changes

Understanding the proposed Australian government rebate changes

The Government helps cover the cost of private health insurance through the Private Health Insurance (PHI) rebate. Right now, this rebate is higher for older Australians, recognising that our health needs often grow as we age.

How the rebate works today

Under the current system:

People aged 65–69 receive a rebate of up to 28.337%
People aged 70 and over receive a rebate of up to 32.385%

This extra support helps keep cover more affordable during the years you're most likely to use it.

What's being proposed

Under the proposed changes:

The higher means-tested rebate for people aged 65 and over would be removed. It would be replaced with the lower base rebate that applies to people under 65

In simple terms, this means older Australians could pay more for their cover than they’re paying now.

Please note: These changes are proposed to begin on 1 April 2027. Nothing has changed yet, and we'll keep you informed every step of the way.

Who could be affected?

Members Health Fund Alliance's independent analysis suggests around 3 million older Australians - roughly 1 in 5 people with private health insurance - could see a change in what they pay.

What you can do

Your voice matters. Here are four simple ways to take action and help protect access to affordable private health cover for older Australians.

Contact your Member of Parliament

Let your local member of parliament know how these changes could affect you and your family.

Contact your MP

Share your concerns

Tell us how the proposed changes would impact you. Your story helps strengthen our case.

Share your concerns

Sign the petition

Add your name to our petition calling on the Government to reconsider.

Add your name to our petition

Stay informed

Stay informed

We're not standing by - here's what we're doing for you

Westfund, alongside the Members Health Fund Alliance and independent experts, are actively advocating for the Government to change its position. Our focus is on:

Protecting access to private healthcare for older Australians
Ensuring the impact on lower-income members is properly considered
Understanding the wider consequences for the health system
Avoiding unnecessary pressure on public hospitals and regional services

Your questions answered

Will my premiums definitely go up?

Not necessarily. The proposed changes are not yet law. We're actively working to have them reconsidered, and we'll let you know if anything changes.

Has anything changed yet?

No.These are proposed changes only, expected to commence on 1 April 2027. Your cover is not affected today.

What should I do right now?

There's no need to make any decisions about your cover today. The best thing you can do is stay informed and, if you'd like, make your voice heard through the actions above.

Where can I get help understanding my cover?

Our team is always here to help. If you have questions about your current cover or what these proposals could mean for you, get in touch with us; we're happy to discuss your options with you.

We'll continue to update this page to keep you informed as information becomes available.

Thank you for being a Westfund member. Protecting your access to quality, affordable care is what we're here for.