Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

AA Concerned Over Health Insurers

AA Concerned Over Health Insurers Proposed Takeover

AA Insurance is extremely concerned about Southern Cross' proposed take over of Aetna health insurance and disagrees with the Health Funds Association chair, Tony Douglas, who was reported as saying he had "no major concerns with the take-over bid".

AA Insurance is a member of the Health Funds Association (health insurance industry association) and they do not believe that the Chairman's views reflect those of all members.

Chris Curtin, chief executive of AA Insurance, says he has serious concerns about the proposed merger and what it will do to the health insurance market in New Zealand.

"We believe the merger will give Southern Cross around 80% of the health insurance market. This makes it extremely difficult for other insurers to compete, especially given Southern Cross' significant influence over the private hospital market and its tax-free status."

"Without any serious competition a market dominant player has less incentive to keep costs down and service up. If, for example, the cost of procedures is allowed to drift up, then health insurance becomes more expensive and there is a possibility that more people will drop out of the private health insurance market & fewer people are likely to consider taking it up."

"A lack of competition in any market is bad for consumers. This merger may lead to other insurers withdrawing from the market, thereby compounding the problem."

Mr Curtin said AA Insurance is making their concerns known to the Commerce Commission.

ENDS

For further information, please contact: Catherine Beard Principal, Comsar Communications, Tel (04) 389 0544, Mob (021) 633 212 Chris Curtin, Chief Executive, AA Insurance, Tel (09) 356 6502, Hm (09) 846 6697, Mob (021) 675 713

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>