Health insurance outlook improves with public uncertainty

October 18, 2012

MEDIA RELEASE – FOR IMMEDIATE USE

Health insurance outlook improves as public uncertainty builds

The number of New Zealanders covered by health insurance in September was virtually unchanged from the previous quarter, according to data released today.

The overall decline in lives covered over the past four years was around 3 percent, with total lives covered now 1.349 million. Annual premiums grew 6.2 percent in the September year, while claims paid increased 4.8 percent on the previous year.

Health Funds Association chief executive Roger Styles said the vast majority of people were retaining their health insurance.

“People want peace of mind, and at the moment there is growing acknowledgement that the public system is not going to meet people’s expectations in the coming years,” he said.

He maintained that health insurance would play an increasingly important role in New Zealand’s healthcare going forward, as the public system was increasingly unsustainable.

“Financial pressure from an ageing population is already putting the squeeze on the public health budget and demanding spending cuts. Roll that forward a few years and New Zealand has some tricky choices about rationing, cuts, and user charges,” he said.

“There needs to be an open debate about future health funding. We need a long-term strategic plan outlining the direction and realities of funding, rather than ad hoc decisions, which do not give people time to plan or adjust.

“The only certainty looking forward is that people are going to have to pay a greater share of their own health costs,” Mr Styles said.

ENDS

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