Health insurers pay out record claims

November 15, 2013

MEDIA RELEASE – FOR IMMEDIATE USE

Health insurers pay out record claims

Health insurers have paid out half a billion dollars in claims in the past six months, mostly on elective surgery, following back-to-back record claims quarters, according to statistics released today by the Health Funds Association (HFANZ).

Claims paid for the September 2013 quarter totalled $256 million, up 12 percent on the September 2012 quarter and beating the previous record high of $245 million paid in the June 2013 quarter. Insurers paid out $931 million in claims in the 12 months ending September 30, 2013, up 7.9 percent on the previous year.

HFANZ chief executive Roger Styles said New Zealand health insurance claims were on track to reach a billion dollars for the first time in the coming financial year.

“This underpins both the valuable contribution health insurance makes to total health spending but also the rising cost of procedures performed,” he said.

The number of people with health insurance stood at 1.335 million at the end of September, a drop of 4100 over the quarter and a decline of 13,500, or 1 percent, over the September year. The majority of policy losses were seen in the 35-49 and 10-19 age groups, suggesting family policies accounted for almost all the reduction in the past year.

Mr Styles said despite the overall drop, the 65-69 age group saw a rise of 3000 over the year as more baby boomers enter that age group.

“As an ageing country we need to think about the long-term access and affordability of elective procedures. More New Zealanders will increasingly need to fund these themselves either through health insurance or out-of-pocket,” he said.

“I believe the government will need to seriously consider assisting in some way not just the 140,000 over-65s, but also the 300,000 people aged 50-64 currently with health insurance to retain this cover as they move into retirement.

“It is clear that public spending will not be able to meet all health needs over the next two decades, so a planned approach to the growing private share is essential. Policies that assist people in funding their own elective health costs in retirement will not only ensure the elderly receive timely medical treatment when they need it but also take the pressure off public hospital resources,” Mr Styles said.

ENDS

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