Health Funds calls for Nats to revisit rebate for over-65s

The Health Funds Association of New Zealand is urging the National-led government to revisit its decision to shelve a proposed health insurance rebate for people over 65 due to the global financial crisis.

Thursday, January 14th 2010, 2:55PM 1 Comment

Executive director Roger Styles says the government had done well to address a range of issues in the public health sector, but the ongoing cost pressure through the health sector was "testing the affordability of health insurance for those over 65."

"With the population ageing, the government has the opportunity to act now to ensure insurance plays a key role in funding health care for the over-65s in the future," he said in a statement. "The Health Funds Association supported National's proposal for a targeted rebate. There are ways to maximise the public benefits while containing costs."

A leaked National Party health document in the lead-up to the 2008 election proposed a rebate on health insurance by as much as 30%, though this was dropped by the party in its official policy that it campaigned on.

Styles said the pick-up in the economy, as forecast by The Treasury's half-year update makes it "timely to give the rebate serious consideration.

He estimates a targeted rebate for over-65s would have an initial fiscal cost of $45 million per annum, though it would provide additional elective surgery funded over the medium-term. More than a third of the $500 million worth of elective surgery every year is for the over-65 group, he said.

"While nearly half of 55- to 59-year-olds have health insurance, this drops to just 25% of those over 65," and the rebate would help slow this, he said.

 

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Comments from our readers

On 22 January 2010 at 2:31 pm LA Herbert said:
Yes the over 65's who have actually saved for their retirement and should be given a rebate on their private healthcare premiums. I don't know if there are any people on a pension only that can afford private healthcare.
But what about all the under 65's? The premiums keep going for them too! How about a rebate for eveyone paying for their own health insurance - we do save the government/district health boards from paying for surgery through the public health system and leave a space for someone who does have to rely on it.
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