Bill aims to encourage health insurance

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Insurance companies are welcoming a private member’s bill that would give people aged over 65 a 25% rebate on the cost of their health insurance and would axe the health insurance fringe benefit tax.

Friday, March 1st 2013, 9:56AM 3 Comments

NZ First MP Andrew Williams said his bill was a response to the lack of health insurance among people aged over 65.

“Seniors over 65 years often stop their insurance when their income drops and their premiums escalate, so a 25% rebate would encourage them to keep their health cover.”

HFANZ chief executive Roger Styles said they had advocated both the rebate and the scrapping of fringe benefit tax in the past as a way to boost private healthcare take-up.

Accuro chief executive Bruce Morrison has spoken in the past about the problem of people cancelling their policies just as they were needed.

Morrison said the Government should look to Australia, where half the population has health insurance, compared to a third of Kiwis. The Australian Government provides incentives for those who take out private insurance.

“Figures show that between 2004 and 2010, the government’s health spend rose from $7.6 billion to $12.7 billion, an increase of 41%.”

He warned the government would face an inability to fund the public system within 20 years.

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