Strongest growth in health insurance for 16 years
February 20, 2018
MEDIA RELEASE – FOR IMMEDIATE USE
Strongest growth in health insurance for 16 years recorded in 2017
The number of New Zealanders with health insurance rose 25,900 to 1.383 million during 2017, the strongest annual growth in coverage since 2001, the Health Funds Association of New Zealand (HFANZ) said today.
Announcing its latest statistics, HFANZ chief executive Roger Styles said over the 2017 calendar year, lives covered increased by 1.9 percent, particularly in the working age group.
Around 19,000 of the additional lives covered were in the 20-64 age group, with 12,900 of them aged 25-39. Mr Styles said much of this could be attributed to a combination of general employment growth and an increase in the availability of employer-subsidised health insurance as part of a broader focus on wellness in the workplace.
“It is pleasing to see an increasing number of employers providing health insurance plans for their staff. They recognise that wellness in the workplace is important, not only for employee health but also as part of their new workplace health and safety responsibilities. The focus there has traditionally been on safety, but now the impact of health is receiving greater attention - not just the impact of the workplace on employee health but the impact of employee health on the workplace, such as through productivity and absenteeism,” he said.
Health insurance paid out $309 million in claims for the December 2017 quarter, up 4.0 percent, and $1.185 billion for the December 2017 year, up 5.0 percent – or $57 million – on the 12 months to December 31, 2016.
“Annual claims have effectively doubled over the past decade, as people have accessed both a greater volume and a wider range of services and treatments through health insurance,” Mr Styles said.
With most health insurers being not-for-profits, premium income also increased broadly in line with claims paid. Premium income for the December 2017 quarter totalled $369 million, up $11 million on the September quarter. Annual premium income for 2017 was $1.431 billion, up 5.4 percent or $74 million, on 2016.
ENDS (Full release and four-page statistical summary can be found by clicking link below)