In the latest quarter, ending March 31, the number of people with health insurance dropped by 3300 lives, down just 0.2% on the previous quarter, but still stands at close to 1.4 million.
HFANZ executive director Roger Styles says New Zealanders may be more determined than ever to hold on to health insurance in the current economic environment.
“The essential message seems to be that access to health services is not an expendable luxury. In uncertain times, people want to know they have options if an adverse health event affects them or a member of their family.”
The small decline in the March quarter partially offset steady growth in the health insurance market in the nine months to December 31 last year.
Over the past 12 months, the number of New Zealanders with health insurance grew by 5,700 lives.
Styles says the job market is likely to be the most significant factor in the March quarter result.
“If the job market is contracting and there is less movement of people between employers, this may affect the regular flow of new lives covered through employer group schemes.”
The drop in coverage – the first since March 2007 – is mainly in the 25–40 year age group, and could be a direct result of the fall in employment levels over 2008, Styles says.
“Any significant changes to employment levels will likely have a flow-on impact on the number of New Zealanders with health cover. That in turn could see pressure mount on the public health system,” he says.
“The growth in health insurance cover over recent years has helped relieve significant pressure from the public system. Claims paid in the last year totalled $712 million – up nearly 50% on the March 2004 year – with the bulk of this relating to elective surgery. The private sector now funds around 60% of all elective surgery in New Zealand.
“A drop in health cover and increased pressure on the public system may be unforeseen consequences of the deteriorating job market. There are options to help address this before it becomes a problem, including revisiting the tax treatment of employer contributions to workplace-based health plans,” Styles says.
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