The government wants to remove the extra private health insurance rebate paid to people aged 65 and over to improve intergenerational equity and provide a less complex rebate.

Its first attempt was defeated in parliament. The government has now brought the bill back with no changes.

Our earlier research suggests the change would reduce cover among older Australians only modestly and wouldn’t swamp public hospitals.

Before blocking the bill’s first attempt, the Greens tried to negotiate for an exemption for about 1.2 million older Australians who receive the age pension.

This would have allowed pensioners to continue to gain a higher rebate for their private health insurance. But would it make the policy fairer?

Our new analysis suggests it wouldn’t. A pensioner carve-out would mostly protect comfortable part-pensioners, while missing younger families who are struggling most.

The evidence supports passing the bill as it is, but if concessions are made, they should target those on low incomes, regardless of age.

Remind me, what does the bill propose?

If you buy private health insurance, the government currently pays part of your premiums. How much you get back depends on your age and income.

The rebate for people in the lowest income group is about 24%, but for people aged 65-69 it is 28%, and for those 70 and older it is 32%.

The bill would end this age bonus, so people on the same income would get the same rebate regardless of their age.

But not all pensioners are the same

To investigate the fairness of this........

© The Conversation