9 October 2017 - Labor’s changes to the health insurance rebate meant federal government spending on the subsidy dropped for the first time in 2015-2016, according to figures that demonstrate how the cuts will deliver savings to taxpayers at the expense of the privately insured.

Australian Institute of Health and Welfare figures show the rebate cost the government $5.79 billion in 2014-2015 but the next year total spending fell to $5.74bn.

Labor introduced a means test and then tied indexation of the rebate to general inflation, not the higher amount that premiums rise by each year, meaning its dollar value to health fund members will decline over time.

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