News Service from House Harris

Private insurance statistics show people not fleeing: Roxon

CANBERRA, Aug 18 AAP - Fears that means-testing the private health insurance rebate will lead to a mass exodus from funds are unfounded, with new figures showing people are still taking out cover, the federal government says.

The latest Private Health Insurance Administration Council statistics, released on Tuesday, show that hospital cover increased by 43,125 people in the last quarter.

That means 211,263 more people had hospital cover in the middle of this year than 12 months previously, Health Minister Nicola Roxon said.

The Senate this week is set to debate Labor's draft laws to means test access to the rebate for singles earning more than $74,000 and families with combined incomes of $150,000.

The opposition has vowed to block the move in the upper house, and crucial balance-of-power senator Nick Xenophon says he can't support it until a Productivity Commission report into the matter is released in a few months.

But Ms Roxon says the new statistics show people have continued taking out private cover since the proposed changes were announced in the May budget.

Some 45 per cent of Australians are now covered by private hospital insurance - the highest proportion since 2002.

"Last year, (opposition health spokesman) Peter Dutton claimed that a million people would leave private health funds," Ms Roxon said in a statement.

"What actually happened was more than 210,000 more people have joined private health funds in the past year."

Under Labor's plan, the rebate will be reduced on a sliding scale and cut out completely once an individual earns more than $120,000 and couples earn more than $240,000.

In a double whammy, the Medicare levy surcharge aimed at people who do not take out private health insurance will climb from one per cent to 1.25 or 1.5 per cent depending on a person's income.

In June, Access Economics suggested up to 100,000 people could drop their cover when the changes are actually implemented - four times as many people as Treasury predicts.

Nevertheless, the health minister insists the government is simply making support for private insurance fairer and more sustainable.

"It is fiscally irresponsible of the opposition to block this legislation," Ms Roxon said.

"If the government continues to provide higher income earners with the full rebate for their private health insurance, taxpayers will have paid out an extra $80 billion on the rebate by 2039/40."