Health Insurers In New Zealand Report Higher Claims

In spite of the fact that there has been adverse economic conditions, New Zealand’s health insurers say there has only been a slight drop in the number of people covered by health insurance, whilst continuing to report high levels of claim costs.

New Zealand’s health insurers paid approximately NZ$ 797 million in combined claims for the year ending June, a figure which rose by NZ$ 72 million from the previous years according to the Health Funds Association of New Zealand.

The association estimates approximately 80 per cent of the claims paid were related to elective surgery and associated costs.

On average, claims costs have risen 9 per cent per annum during the past five years.

“Growth in claims costs has been running at a high level over recent years due to increased demand, expansion of services funded, and medical inflation. Cost-shifting from the public sector has also contributed,” HFANZ executive director Roger Styles said.

Premium income rose 8.5 per cent from the previous year to NZ$ 918 million. There was a drop of 800 in the number of lives covered in the June quarter.

About 1.389 million New Zealanders have health insurance.

“Overall, coverage tends to be holding up pretty well despite the adverse economic conditions over the last couple of years,” Mr Styles said.

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