The government's plan to reduce the higher private health insurance rebate for Australians over 65 is being called out by the insurance industry amid reported pushback from the states. RELATEDIt means more than 3 million older Australians, including nearly half a million pensioners, face paying hundred of dollars a year more for their private health insurance, with the government estimating that around 44,000 older Australians would drop their cover. But Private Healthcare Australia (PHA), the peak body for health insurance funds, claims that number could be a significant underestimation from the government. "Older Australians are furious about this," she said in a statement on Friday. "Many of them have been investing in health insurance for decades and right when they need to use their cover most, the Government is forcing them to pay hundreds more a year for it.