Health insurance numbers stabilising - HFANZ

July 31, 2012
MEDIA RELEASE – FOR IMMEDIATE USE

Health insurance numbers stabilising - HFANZ

The number of New Zealanders with health insurance is showing signs of stabilising after several consecutive quarters of decline, according to figures released today by the Health Funds Association (HFANZ).

Chief executive Roger Styles said the June 2012 quarter saw a decline of 0.1 percent in lives covered – or 1600 people – bringing the total number of lives insured to 1.349 million. This was a decrease for the full year of 17,300 people, or 1.3 percent, compared with June 2011.

He said the stabilisation in lives covered was welcome news, and indicated people were seeing the value in holding on to their health insurance in these uncertain times.

“Coverage has historically varied along with economic conditions, so we expect that health insurance coverage will pick up again as the New Zealand economy improves in coming years,” Mr Styles said.

OECD figures released last month showed health spending in New Zealand in 2010 was 10.1 percent of GDP, higher than the OECD average of 9.5 percent and well above the likes of Australia and Finland. Most OECD countries had zero growth in health spending that year, but New Zealand maintained 3.4 percent growth in the sector – the third highest behind Korea and Chile.

“The figures suggest other countries are facing more challenging environments fiscally, although New Zealand is not immune from health funding pressures. In coming years, people will need to come to terms with the fact that they are going to have to shoulder a greater share of their health costs than they presently do,” Mr Styles said.

Premiums earned in the June 2012 quarter were $271 million, virtually unchanged from the $270 million paid in the March quarter. Premium income for the full year ended June 30, 2012, totalled $1.07 billion, an increase of $67 million, or 6.7 percent, on the June 2011 year.

Claims paid in the June 2012 quarter totalled $221 million, taking the total for the 12 months to the end of June to $854 million. This was an increase of $27 million, or 3.2 percent, on the previous June year.

ENDS

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