Greens back means test on health rebate

The Greens have extracted a $165 million down payment for public dental services to lock in their support for means-testing the private health insurance rebate.

The Government said it had won its three-year fight to means test the rebate, which will raise premiums for almost 2.5 million health fund members from July.

Coalition MPs were filibustering in the debate last night but a vote in the Lower House is likely today.

As well as the Greens, whose backing means the Bill will sail through the Senate, key independents Rob Oakeshott and Andrew Wilkie declared support yesterday.

Mr Oakeshott last night called for more health spending cuts to keep the system sustainable.

Under the means test, the rebate will be phased out for singles earning more than $83,000 a year and families above $166,000. Singles earning more than $129,000 and families on more than $258,000 will lose the rebate. Families with a $2500 annual policy face a premium rise of up to $1000.

The means test will save $2.4 billion over three years and deliver half of Labor's promised $1.5 billion Budget surplus in 2012-13.

The Greens always supported means tests but demanded the dental cash in return for backing a rise in the Medicare levy surcharge.