Private health changes will pass: PM

6 Feb 2012, 5:43 pm   -   Source: AAP
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It could be a case of third time lucky when Labor tries to again means test the 30 per cent private health insurance rebate, the prime minister says.

Prime Minister Julia Gillard expects the Labor government will finally get legislation through federal parliament to means test the private health insurance rebate for wealthier Australians.

Debate on the controversial measure is scheduled to resume in the lower house on Thursday with Labor close to securing the support of the three crossbench MPs it needs to pass the draft laws.

Ms Gillard said the taxes of working Australians shouldn't be used to subsidise the private health insurance of people who were much better off.

"We obviously want to see these changes pass the parliament and we will continue the necessary discussions to get these changes to pass the parliament," she told reporters in Canberra on Monday.

"This is an incredibly simple fairness proposition."

The government wants to means-test the 30 per cent private health insurance (PHI) rebate and, at the same time, increase the Medicare levy surcharge for those without cover.

Greens leader Bob Brown is concerned about that second part of the plan because it penalises people who don't take out private health insurance.

But he suggested on Monday the Greens wouldn't block means-testing the rebate even if the government refused to buckle when it came to boosting the surcharge.

"If push comes to shove we will be getting the best outcome we can," Senator Brown told reporters in Canberra.

"We are not the Abbott opposition trying to block."

Along with the sole Greens lower house MP, Adam Bandt, the government is banking on the support of independents Andrew Wilkie and Rob Oakeshott in the House of Representatives to pass the PHI changes, which are expected to save $100 billion by 2050.

Both are inclined to back means-testing the rebate for individuals earning more than $80,000 and families earning more than $160,000 - with some caveats.

Mr Wilkie told AAP on Friday he wanted to examine new evidence on the likely impact of the changes before being able to confirm his support.

At the same time, Mr Oakeshott said he didn't buy the "armageddon argument" that private health insurers would lose vast numbers of members if the rebate was means-tested.

He wants assurances about the impact on specialist services in the bush but has supported similar legislation in the past.

The government's reforms have been defeated twice previously in the Senate.

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