Health insurance premiums keep rising
Southern Cross has again put up its health insurance premiums and other insurers are following suit.
Thursday, July 29th 2004, 6:55AM
Group chief executive Ian McPherson says surgical claim inflation has been significant in the last two years - the result of an increasing number of surgical claims, as well as a higher average cost per surgical claim.
He says the increase in base premium rates takes account of the cost of these increasing claims.
“Our goal is to achieve a sustainable balance between premiums paid in, claims and other costs going out, and contributions to our financial reserves,” says Dr McPherson.
The Health Funds Association of New Zealand (HFANZ), which represents the health insurance sector, said some of the country's 14 other health insurers were also increasing their premiums.
Executive director Andrea Pettett says HFANZ’s own research shows health insurance premiums have increased over the last decade due to an increase in the number and type of medical services funded by health insurers.
It says it is likely that premiums will continue to rise as the population ages, the costs of medical care rise, and through the extension of new and existing medical technology to consumer groups.
HFANZ’s research shows health insurers fund around 72% of surgery in the private sector.
HFANZ says the percentage of New Zealanders with health insurance has fluctuated over the last decade. The New Zealand population has increased 3.93% from December 2001 to December 2003, with the number of people with health insurance declining 1.4% over this period.
But recent data shows the number of people with health insurance is on the rise again and aging is set to become a significant factor.
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