Health Insurance Coverage up

Health Insurance Coverage up, Claims top $600 million

More New Zealanders taking out health insurance, together with higher claims costs, have pushed total annual health insurance claims over the $600 million mark for the first time.

In the year ended 30 September 2007, the number of New Zealanders covered by health insurance grew by 20,000, according to industry statistics released this week by the Health Funds Association of New Zealand (HFANZ).

HFANZ Executive Director, Roger Styles, says there has been large growth in the take up of major medical policies, which provide cover primarily for surgical treatments, with a small reduction in comprehensive policies.

“There are now more elective procedures funded privately than in the public system, with the bulk of them being paid for by health insurance. The majority of the $600 million in claims cost relates to surgical procedures, so there is a huge benefit to the public system from people having insurance.”

Mr Styles estimates the 1.38 million New Zealanders with health insurance could collectively be saving the public health system around $400 million dollars annually.

“Any way you look at it, this is a significant contribution to freeing up public sector resources and saving scarce public health dollars.”

ENDS

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