Health insurance drops 10,000 in 2010 - HFANZ

January 31, 2011

The number of New Zealanders covered by health insurance dropped by 10,000 during 2010, according to figures released by the Health Funds Association (HFANZ) today.

Executive director Roger Styles said the drop over the year continued the easing of coverage since the credit crunch in 2008.

“We have seen a drop of around one percent in the number of lives covered since December 2008, which is not a large reduction in the context of the subdued economy and the level of health inflation over recent years,” he said.

Despite the dip in coverage, both claims and premiums increased over the year. Total claims paid rose by $60 million on 2009 to $825 million for the 2010 year. Premium income increased to $962 million for 2010, an increase of $87 million on 2009.

Mr Styles said there was an underlying resilience in the sector, given that people valued the benefits and peace of mind that health insurance offered.
“Health insurance predominantly funds elective surgery, with a major attraction being the choice, convenience and ability to bypass public waiting lists. The recent tightening of ACC funding for elective surgery has helped reinforce the importance of maintaining private health cover.”

Although around half of elective surgery in New Zealand is privately funded, Mr Styles said he believed there was scope to help lift the private contribution in health. He pointed to the latest OECD data showing New Zealand was slipping behind the OECD average private contribution to total health costs.

“This will become an important focus over the next decade as the aging population places huge funding pressure on the public health sector. If we are to maintain a balanced health system, then we need to look to policy measures which will help lift the private contribution in health,” Mr Styles said.

ENDS

© Scoop Media