The recent passing of legislation to means-test the private health insurance rebate through the House of Representatives is considered as a big feat for Australians according to Health Minister Tanya Plibersek. Plibersek also mentioned that this legislation would help taxpayers save at least AU$2.4 billion over the next years thus equating to a staggering amount of AU$100 billion for a span of 40 years.

Presently, the private health insurance rebate is the fastest growing cost to the health budget. The Health Minister further stated that "This is a landmark reform being brought about by a Labor government committed to improving the lives of working people and creating greater fairness for them and their families. The legislation is a win for low and middle income earners, who for too long have been forced to subsidise the private health insurance of higher income earners through their taxes."

"The Gillard Government is committed to strengthening our health system and making sure it provides the best possible health care to Australians, where they need it, when they need it."

Ms. Plibersek said the three Fairer Private Health Insurance Incentives bills passed the House of Representatives today with the support of the members for Lyne, Denison and Melbourne.

The Government has also committed to spending $165 million over three years, funded by an increase to the Medicare levy surcharge for higher income earners, contained in the legislation, on public dental services.

"The Gillard Government is committed to a establishing an improved dental scheme that is targeted at Australians who can least afford to pay for oral health care themselves."

"This is another victory for working Australians some of whom have difficulty meeting the cost of going to the dentist and maintaining their oral health."

The passage of the legislation through the House of Representatives comes as new figures issued today by the Private Health Insurance Administration Council (PHIAC) show that more Australians are covered by private hospital insurance now than at any other time in the past 36 years.

Ms Plibersek said since the Government took office, around one million people had taken out new hospital cover, raising the participation rate to 45.7%.

According to PHIAC in the December 2011 quarter the private health insurance industry reported a record profit of $461 million before tax. Profit before tax for the year to December 2011 was $1.27 billion.

Under the government's legislation to means-test the rebate, in the next financial year, individuals earning $83,000 or less, or families earning $166,000 or less will not be affected at all by the changes.

As income increases, the taxpayer funded subsidy decreases, however only singles earning more than $129,000 a year and families earning $258,000 or more in the next financial year will lose the rebate entirely.

The legislation will now be considered by the Senate.