Means testing the private health insurance rebate will prompt many people to drop their private health cover and put more pressure on the public health system, Premier Colin Barnett says.
The federal government's bill to introduce the means test successfully passed through the House of Representatives on Wednesday after Labor secured the crucial votes of the Greens and independent MPs Rob Oakeshott and Andrew Wilkie.
The means test, and the accompanying changes to the Medicare levy surcharge, are expected to save the Government $2.4 billion over three years.
But Mr Barnett told reporters in Perth he was concerned a significant number of people would drop their private health cover.
"What that will mean is they will go out of the private hospital system into the public system and add to the pressure on that."
Mr Barnett said incentives and encouragement should be provided to people through the tax system to have private health cover if they could afford it.
He said the WA government would not seek compensation over the issue but would continue to provide quality health care.
Previously the rebate was available to all Australians irrespective of income.
