Is health insurance pricing baby boomers out of the market?

Is the rising cost of health insurance pricing baby boomers out of the market?

Auckland, 23 March 2017. As the average cost of health insurance reaches $2,210 per year, over half of people think it is becoming too expensive. For baby boomers rates climb even higher with average costs rising to $3,765 per year.

As a result, 32% of baby boomers have reduced their cover to keep the costs of premiums down and 45% say they only had restricted cover because broader cover was too expensive. This compares to an overall customer average of 18% and 29% respectively.

Speaking on the result of the latest Canstar Blue survey, general manager Jose George said:

“There is no doubt that baby boomers are feeling the pinch when it comes to the rising cost of health insurance. Although an overwhelming majority of our older generation liked the peace of mind health insurance provides, unfortunately two in five of them will sacrifice spending in other areas in order to be able to pay their premiums.”

Why so high for baby boomers?

According to the OECD, life expectancy in New Zealand has risen by approximately five years since 1992. In addition, government statistics show that the over 65 age group is increasing, making up just over 14% of the population according to the 2013 census.

George continues:

“At first glance, our older generation is paying more in terms of premiums despite making a similar number of claims as the younger age groups per year. However, the claims they make are three times more likely to be for serious illness. This may also explain why baby boomers are three times more likely to stay with their insurer due to pre-existing conditions.”

Are you covered?

If you’ve not got health insurance, or think you may be paying too much for you current premiums, research the market to look at what is available and which provider may be able to match your needs.

Most Satisfied Customers

For the second year running, New Zealand’s largest health insurance provider, Southern Cross Healthcare, has been awarded Canstar Blue’s Overall Customer Satisfaction award.

Receiving the award Nick Astwick, chief executive officer, Southern Cross Health Society, said.

“As an organisation that operates first and foremost for the benefit of our members, we are very pleased to get such positive feedback about their experiences.

“Technology is now a big part of satisfying customers’ service expectations – so we’ve been purposefully expanding web and mobile app services, our Affiliated Provider and Easy Claim networks, and growing online self-service options. With that said, knowledgeable, caring people will always be at the core of delivering market leading service experiences.”

For further information regarding this survey, please click here.

ENDS

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