Over time, the rebate rates have decreased slightly and now depend on both income and age. However, the higher discount for older people has always remained.
So we looked at data from more than 300,000 people who filed tax returns over more than a decade . We then compared the trends in insurance coverage of people younger than 65 and older than 65, before and after the 2005 rebate policy change.We found higher rebates led to a modest and short-term increase in private health insurance take-up.
A recent consultation report commissioned by the federal health department reviewed a range of health insurance incentives. A private health insurance rebate was introduced in 1999 but Australia continues to provide public health care.We also need to look at whether rebates provide value for money more broadly, and across all ages.