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

 


Modest Increase to Southern Cross Reserves

12 September 2006
Media Release


Modest Increase to Southern Cross Reserves


The Southern Cross Medical Care Society is in a healthy financial position to the year ended 30 June 2006, with reserves now standing at $280.2 million.

Appropriate solvency standards for the organisation have been maintained, ensuring the not-for-profit organisation’s ongoing stability, a position recognised in the current Standard and Poor’s A+ rating.

The decision by the Southern Cross Medical Care Society not to increase base premium rates for around 80% of adult members last year has been a factor in the financial result. A modest surplus of $10 million was achieved, in comparison to a net surplus of $31.8 million in the prior year.

The Chairman of the Society, Dr John Matthews, said a successful year for us is one where we achieve the right equilibrium between premium income and claims.

“This year, the Society earned $472 million in premiums and returned $398 million to members through payment of claims – an excellent ratio of 84.4%.

“Our ability to pay out this ratio is directly linked to our status as a not-for-profit Friendly Society. We are not here to make a profit to be returned to shareholders. We are here to ensure we provide appropriate cover at an affordable price and to manage the business responsibly to ensure it remains financially stable and sustainable.

“It is good to report we have achieved both.”

Southern Cross Healthcare Group Chief Executive, Dr Ian McPherson said, “We achieved this result while not only holding base premiums for most members, but also rolling out the Low Claims and Founding Members Rewards. These two initiatives saw total savings of $35 million for members.

“We continued to make progress on our review of policies and benefits, taking every opportunity to improve our services.

“And in this period we saw an increase in demand for care, as well as higher costs claimed for that care. As at September 2005, total claim costs escalated by 8.5%. In fact, members’ claims for surgical procedures rose even higher – by 11.8%.”

This resulted in the Society’s necessity to raise members’ premiums in the current 2006/07 financial year by an average of 6.5%.

This increase in claims costs is supported by HFANZ industry data. As at 30 June 2006, national health insurance claims increased by $48 million to $564.7 million. Claims by Southern Cross Medical Care Society members accounted for 71% of that, with the Society covering $398.3 million worth of health care in the previous 12 months.

Dr McPherson said, “This is a good outcome for the year. It means members are getting what they expect from their Society - access to treatment when they need it - even though the cost of that treatment has continued to rise year-on-year.

“Our most pressing priority has been, and will continue to be, serving our members well in an increasingly pressured health care environment.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news