Kylie Richards with her sons Josh (13) and Tyson (9) at their home in Henley Beach, Adelaide will be affected by the Governments cuts to the Private health insurance rebates Picture: Kelly Barnes

SHAUN and Kylie Richards are angry they stand to lose their private health insurance rebate under the deal brokered in federal parliament yesterday.

The couple, who own a commercial flooring business in Adelaide, earn a combined income of more than $258,000.

This means they will lose the 30 per cent health insurance rebate they currently receive from the federal government.

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"It's ridiculous - the better we do, the more the government takes," Ms Richards said yesterday. "Every time we try to get ahead and don't rely on the welfare system, we get a guarantee they'll hit us again."

Ms Richards estimates the family spends more than $2650 a year on private health insurance, including hospital cover and extras, with Medibank Private.

The couple have two sons, Josh, 13, and Tyson, 9, and took up private cover about 15 years ago in preparation for their family's future health needs.

Mr Richards, an ironman triathlete, regularly uses his cover to pay for physiotherapy, and Josh has dental braces.

"We chose not to go through the public system so we don't have to put any strain on it, but because we try to do the right thing, they penalise us," Ms Richards said.

The couple are in tier three, the highest tier on health insurance, which means they would lose all of their rebate if the legislation to means-test the benefit is passed in parliament next week.

The introduction of a means test would benefit the budget by $2.4 billion over the next three financial years, at the expense of families such as the Richards.

Ms Richards said she and her husband would now consider self-insurance, and had thought about it previously.

"I think if they're going to take away the 30 per cent, I would be looking at what we'd spent, what we received back with Josh, and whether we need it," she said.

"Then the government would be looking at us and our use of the public system."