HBF warns of $1900 rises under test

More than 200,000 West Australians face an increase of up to $1900 a year for health insurance if the Gillard Government successfully means tests the 30 per cent private health insurance rebate, the State's biggest health fund claims.

But as insurers meet in Canberra today to discuss the industry's campaign, Health Minister Tanya Plibersek insisted the means test was needed to stop taxpayer money subsidising health cover for the rich.

The fate of the means test proposal remains up in the air, with NSW independent Rob Oakeshott crucial. He indicated this week he did not agree with funds' view the means test would lead to an exodus of members but wants assurances the changes would not hurt medical specialists in the bush.

The Greens have pledged to back the means test and Tasmanian MP Andrew Wilkie wants updated information but has previously pledged to support it.

Under the proposal, the rebate will be wound back gradually for singles earning more than $83,000 a year and families on more than $166,000. The rebate will cut out once their income hits $129,000 and $258,000 respectively.

Labor has been trying to impose the means test since the 2009 Budget but was blocked twice by the Senate. It was listed to be debated in Parliament tomorrow but may be postponed.

WA's biggest health fund, HBF, estimates about 208,000, or 23 per cent, of its members stand to lose all or part of their rebate. For a family with the fund's top hospital and extras cover, their premium would rise $1900 a year to $6306 if they lost their rebate.