KiwiSaver-style scheme for health insurance suggested

While there is clearly pressure on the public health system, and private health insurance helps relieve some of that pressure the amount of cover New Zealanders have isn't particularly high.

The health insurance sectors has always struggled to get engagement with governments on incentives, such as tax breaks, to help encourage people to buy cover.

Bawden says an option would be to have a scheme where people can pay for cover on a regular basis.

While she hasn't developed a hard and fast model for how such as scheme would work it would be like KiwiSaver where people can opt out.

“Such a scheme must be affordable starting with 1-2% of income. It could be a top-up or a rebate for people over 65. What is important is that it makes provision for health care that the government can’t provide,” she says.

“New Zealand needs the government to have this conversation and it’s one that Accuro won’t abandon. It’s so important that people have choice and this is what private health insurance provides.”

Bawden saysTreasury is giving New Zealand a clear view that current expenditure is unsustainable.

By being aware of the challenge to government to meet the provisions of elective surgery within reasonable timeframes, she sees an urgent need for ongoing dialogue between the government and private health providers.

“It’s essential that discussion takes place,” she says. “The burgeoning cost of health is the elephant in the room and governments haven’t faced up to it.”

She says that when the public health system overflows then private hospitals provide a role in caring for people. That’s where health insurance becomes involved she explains. Without private health insurance, there won’t be private hospitals. It’s as simple as that.

Comments from our readers

On 26 June 2014 at 11:40 am Moozaik said:

This is a real issue that needs to be addressed by the Government. They need to admit that the current public healthcare model has cracks and is not sustainable.

However a "Kiwisaver" style deduction based on income is a crazy idea. I would have expected better from Accuro. Introducing a left-wing socialist policy like this is certainly not the answer.

On 27 June 2014 at 3:44 pm Robert said:

We have one already, it's call TAX

On 30 June 2014 at 5:18 pm Just a comment said:

The problem is premiums and they are as a result of claims costs
The private insurers should stick to insuring elective surgical items and should not try to run a parallel to the public. And no Moozaik you are wrong. The public is extremely good and yes Robert you are right
And the private should contain the costs that are being charged. Motor insurers do not allow panel beaters to control the costs
The idea from Accuro is dumb. Tower had a policy that rebated all premiums in excess of claims - dropped that too. Yes I know Tower health is now NIG
And maybe commissions should be like those in Australia - very little

On 1 July 2014 at 11:10 am Broker said:

The only people winning are the overpaid specialists who work for both the public and the private sector...rubbing their hands together when they learn someone has private medical insurance. The whole system is quite sick on a number of levels in my opinion.

On 4 July 2014 at 2:17 pm johnny said:

Also to blame are surgical techniques that shorten the hospital visit (the cheaper per hour, hotel part) but lenghten the time needed by surgeon and anesthetist, the really expensive per hour part.

Baby boomers who haven't looked after their health and now expect to be cured of everything doesn't help either.

KiwiSaver-style scheme for health insurance suggested

Accuro's chairman, Jane Bawden, says the government should develop a KiwiSaver-style scheme for health insurance.

Thursday, June 26th 2014, 7:32AM 5 Comments

Comments from our readers

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