Dr Glasson said the AMA welcomes this initiative because it gives people over 65 with private health insurance greater access, affordability and choice for their complex health needs.

“The AMA encourages and supports policies that improve the accessibility and affordability of health care for Australia’s ageing population,” Dr Glasson said.

“People over 65 are the highest users of hospital services and are a major factor in the demand for public hospital services.

“The increased rebates will give older patients greater choice in accessing the type and level of medical care they need and deserve.

“Older Australians with insurance will be more likely to keep it, and those without private cover now have a greater incentive to join a fund.

“If successful, the increased rebates will bring more private dollars into the system and allow the available public health dollars to go further.

“Overall, it is more economical than the Government paying the full bill, as it has to do in the public system, and ultimately it benefits more people in their access to the health system.

“It is yet another strong initiative by this Government to make the private health system stronger.

“On current trends, private hospitals will soon provide 50 per cent of all admissions. They already provide 50 per cent of all surgery.

“To make this policy work, the health funds must provide affordable products that include services relevant to the aged, such as rehabilitation and psychiatric services.

“Labor and the minor parties must also get behind this policy to ensure that Australia has a strong health system based on complementary public and private sectors that deliver choice and quality to all Australians,” Dr Glasson said.