Health insurance coverage drops to 2005 levels
The amount of New Zealanders with health insurance fell 2% in the year to March and stands at the same level as 2005, according to figures from the Health Funds Association (HFANZ).
Tuesday, May 1st 2012, 6:50AM
by Benn Bathgate
The March 2012 quarter saw a decline of 0.5% in lives covered - or 7,100 people - bringing the total amount of lives insured to 1.35 million.
The total number fell 1.9%, or 25,700 people, over the full year compared to March 2011.
HFANZ chief executive Roger Styles said health insurance coverage varied with the economic cycle and he called on policyholders to talk to their insurer before dropping health cover.
"Once coverage ceases, it is difficult to pick up later and get coverage for pre-existing conditions," he said.
"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."
While the amount of people with health cover fell, both premiums earned and claims paid rose.
Premium income for the full year totalled $1.05 billion, an increase of 7.1% ($70 million).
Claims paid for the 12 months to March 2012 stood at $844 million, up 2% or $16 million.
HFANZ cited a number of factors for the rise in claims paid, including increased demand, and expansion of services funded and medical inflation, though it said the rate of growth had slowed, reflecting the fall in lives covered.
Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz
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