Private health insurance rebate changes: Your questions answered
Published October 2026 | 5 min read
Expert contributor: Josh Edwards, General Manager of Health Policy and Insights, HCF Group
Words by Angela Tufvesson
Confused about the proposed age-based private health insurance rebate changes and what they might mean for you? Here’s what we know so far.
Key takeaways
- The Australian Government has proposed removing the additional age-based private health insurance rebate currently available for Australians aged 65 and over.
- If the legislation passes Parliament, the changes would take effect from 1 April 2027.
- The changes are not yet law.
- HCF Group is advocating on behalf of members to help reduce the impact of the proposed changes.
If you have private health insurance and you’re 65 or over, you may currently receive a higher Government rebate to help with the cost of your cover. The amount depends on your age, income and family status.
In the 2026–27 Federal Budget, the Australian Government proposed removing the additional age-based rebate. If the legislation passes Parliament, the changes would take effect from 1 April 2027.
Here, Josh Edwards, HCF Group’s General Manager of Health Policy and Insights, explains what's being proposed, what it could mean for members and what HCF Group is doing to advocate on their behalf.
“We know changes like this can be confusing, particularly when you’re trying to understand what they could mean for your household budget. Our role is to help members understand what’s changing, what it could mean for them and the options available.”
What is the rebate?
The Australian Government rebate on private health insurance is a Government contribution towards the cost of your private health cover. Put simply, it helps reduce the amount you pay for your premium.
Currently, the rebate you may receive depends on your age, income and family status. If you’re 65 or over, you may qualify for a higher rebate than someone younger in the same income tier.
What’s proposed to change?
The Australian Government has proposed removing the additional age-based component of the private health insurance rebate. Under the proposal, your rebate would be based on your income tier rather than your age. This means Australians aged 65 and over would receive the same rebate percentage as younger people in the same income tier.
“The important thing to understand is that the rebate itself isn’t disappearing. What’s proposed is the removal of the additional age-based rebate. For affected members, that would mean paying a greater share of the premiums themselves,” says Josh.
If you’re 65 and over and currently receive the additional age-based rebate, the percentage of your premium covered by the Government would decrease. This means you would need to pay more towards the cost of your cover.
The Government says the change is intended to provide the same level of support to people in the same income tier, regardless of their age, with savings invested in aged care services.
When will the private health insurance rebate changes happen?
The changes would take effect from 1 April 2027. Importantly, the Bill is still before Parliament, so the changes are not yet law.
HCF Group provided a submission to the Senate committee, advocating for changes to the legislation to help reduce the impact on older Australians. We’re continuing to engage with Government and industry stakeholders on behalf of our members.
For many older Australians, private health insurance plays an important role in accessing healthcare and managing their health needs. We’re particularly conscious that the proposed changes come at a time when many members may be retired or living on fixed incomes.
“We recognise that private health insurance is important to many older Australians, particularly as their healthcare needs increase. That’s why HCF Group is advocating to reduce the impact of these proposed changes on members,” says Josh.
How much more could you have to pay?
If the proposal becomes law, the amount you pay for your cover after applying the Government rebate may increase if you currently receive the additional age-based rebate.
Exactly how much more you may pay will depend on factors including your current age-based rebate, your income, family circumstances and premium.
Once we know the final outcome of the legislation, we’ll provide members with more information about what it means for their cover. In the meantime, if you’re concerned about affordability, our teams can help you review your cover and talk through your options.
Why being not-for-profit matters
As a not-for-profit, member-owned health fund, we’re focused on delivering value for our members rather than returns to shareholders.
“Being not-for-profit means our focus is firmly on our members. We want to keep delivering value while helping members navigate changes to the health system that may affect them,” says Josh.
What can you do if you’re worried about rising costs?
Depending on your cover and circumstances, private health insurance may help with eligible healthcare costs and provide greater choice about some services and providers.
If you’re concerned about the affordability of your cover, there may be ways to reduce what you pay while keeping cover that’s right for you. Depending on your circumstances, these could include:
- reviewing your cover to make sure it still suits your needs
- paying your premium up front for up to 18 months
- considering a higher excess.
RT Health lets eligible members pay up to 18 months of premiums in advance, helping you lock in your current rate for longer.
“There’s no single option that will be right for everyone. The best starting point is to talk to us. We can look at your cover and circumstances together and help you understand the choices available,” says Josh.
We recommend getting in touch with our Member Care team. Our frontline is ready to have a conversation about what’s best for you and your circumstances.
Have more questions? We’re here to help
We know every member’s life stage and situation are unique. If you’d like help understanding the proposed changes, reviewing your cover or talking through affordability concerns, we’re here to help.
Give our Member Care team a call on 1300 886 123 or get in touch via help@rthealth.com.au and we'll talk through your cover options.
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