Southern Cross Health Society turns around deficit

Southern Cross Health Society has turned around last year's deficit to post a surplus of $10.7 million for its most recent financial year.

Monday, September 16th 2019, 1:09PM

Last year, it had a deficit of $13.3 million.

In the year to June 30, the country's largest health insurer paid out $963.7 million in claims, up 6% on the previous year.

It has 62% of the market but paid 73% of all private health insurance claims.

It received $1.08 billion in premiums in the year.

Chairman Greg Gent said the surplus was the result of carefully balancing income from premiums with outgoing claims.

“The society continues to deliver excellent value for members with an outstanding claims ratio compared with other health insurers. We’re always conscious of the fine balance between offering maximum value for money to our members and ensuring the affordability of premiums.”

Last December, it reduced the number of procedures that could be claimed for under its RegularCare policy. It no longer covers sterilisation, chiropractor or osteopath services, obstetrics support or a public hospital cash allowance.

It said 70% of the increase in premiums charged in the year was due to more members claiming, and 30% to procedure price inflation.

Chief executive Nick Astwick said its Affiliated Provider programme had saved $56 million and those savings should continue. "We’ve made some decisions over the past year that have delivered a sound result."

The society had 3,472 more members than the year prior, at 827,065.

It revealed earlier this year that it was changing the way it paid adviser commissions.

Tags: health insurance Southern Cross