The Federal Government and the Greens have hailed a deal over private health insurance as a "win for fairness".

Health Minister Tanya Plibersek has secured Greens support for the Government's health legislation with a $165 million package to provide dental services to low-income earners.

The legislation will allow means-testing of the private health insurance rebate and an increase in the Medicare Levy surcharge.

The Government still needs the votes of cross-bench MPs, but Ms Plibersek believes the bill could pass the House of Representatives as early as tonight.

"It means that low-income Australians won't be subsidising the private health insurance rebates of much higher-paid Australians," she said.

"I'm going to let the other crossbenchers speak for themselves, but what I can say is that I feel confident that this legislation will now pass in an unamended form."

The money for dental care will be funded by an increase in the Medicare Levy surcharge for people on higher wages who do not hold private hospital cover.

But the main plank of the legislation will means-test the private health insurance rebate, with reductions beginning for a single person earning more than $80,000 and families on $160,000.

The rebate will cut out completely for singles who earn more than $124,000 and families on more than $248,000.

Labor has been trying to means-test the private health insurance rebate for nearly three years. It represents a $2.4 billion boon to the budget.

Ms Plibersek says the changes are fair.

"Instead of subsidising the private health insurance of people on $250,000 a year, $500,000 a year, $1 million a year, it will instead be used on the sort of things that we're talking about today - the dental health needs of some of our most disadvantaged Australians," she said.

'Down-payment'

Greens health spokesman Richard Di Natale says the deal is a win for low-income earners.

"Those people who can now go to the dentist who couldn't afford to do so previously will be grateful," he said.

But Senator Di Natale says he views the investment as a "down-payment" and the beginning of negotiations with the Government over better dental care.

"It's not enough, more needs to be done," he said.

"We're very aware that there needs to be a significant investment in dental care."

The Greens have been calling for dental services to be included in Medicare, something the Government estimates will cost around $5 billion a year.

While the Minister says that is not affordable, she has left open the possibility of more money for dental services in the May budget.

"We don't have a final position on any dental package going into the budget; we still have a lot of policy work to do," Ms Plibersek said.

Labor promised to address dental services in its 2010 deal with the Greens to form government.

The Coalition plans to vote against the changes to the private health insurance rebate, but Opposition Leader Tony Abbott has again refused to say whether he would scrap the means test if he wins government.

Mr Abbott would only say the Coalition would continue to fight the plan.

"We will fight for it, and if the independents have any integrity they will stop this $2.4 billion hit on Australian families," he said.