Health Insurance Numbers Down 2 Percent: HFANZ

April 27, 2012
Media Release – For Immediate Use

Health Insurance Numbers Down 2 Percent: HFANZ

The number of New Zealanders with health insurance dropped almost 2 percent in the year to March, according to figures released today by the Health Funds Association (HFANZ).

Chief executive Roger Styles said the March 2012 quarter saw a decline of 0.5 percent in lives covered – or 7100 people – bringing the total number of lives insured to 1.351 million. This was a decrease for the full year of 25,700 people, or 1.9 percent, compared with March 2011.

He said the decline over the last year took the total number of lives covered back to September 2005 levels, when better economic times saw health insurance coverage levels increasing. Over the last decade, coverage had hovered around 31-34 percent of the population. The latest dip meant it was currently 30.5 percent.

Mr Styles said health insurance coverage tended to vary with the economic cycle, rising when the economy was doing well and falling off when economic conditions deteriorated. He also cited increasing pressures on the discretionary dollar, together with big jumps in the cost of home and contents insurance following the Canterbury earthquake.

“Many people have had to make some difficult choices in the last year, although I would urge people to talk with their insurer rather than simply dropping their health cover. In many cases there will be options for changing the plan they are on to something more affordable, possibly with a change in the level of excess or coverage,” he said.

“Dropping cover completely should really be a last resort, because once coverage ceases, it is difficult to pick up later and get coverage for pre-existing conditions.”

Premiums earned in the March 2012 quarter were $270 million, up slightly on the $268 million for the December 2011 quarter. Premium income for the full year ended March 31, 2012, totalled $1.054 billion, an increase of $70 million, or 7.1 percent, on the March 2011 year.

Claims paid in the March 2012 quarter totalled $196 million, taking the total for the 12 months to the end of March to $844 million. This was an increase of $16 million, or 2.0 percent, on the previous March year.

Three-page statistical summary follows:
2012 March Health Insurance Statistics.pdf

ENDS

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