The Federal government plan to means test the private health insurance rebate has cleared parliament's lower house this morning with opposition attempts to delay the commencement of the law change until after the next election failing.

Once passed by the senate, which is expected to be a formality, the new means test will apply from July 1, 2012.

Individuals earning more than $83,000 and families earning more than $166,000 will have their rebate reduced on a sliding scale.

Individuals earning more than $129,000 and families on incomes greater than $258,000 will lose the rebate altogether.

It is estimated the result will be an increase in the cost of private health insurance of up to $500 and $1000 respectively.