Private health insurers paid out $1.2 billion in total claims for the 12 months ending September 30, up 6.7% or $74 million on the September 2016 figures, data released from the Health Funds Association of New Zealand (HFANZ) has revealed.
The data also highlighted that a record $321 million in claims was paid out for the September quarter, up 7.3% on the same period in 2016. It is also the first time quarterly claims have exceeded $300 million.
HFANZ chief executive Roger Styles said the association monitored all health insurers in New Zealand to determine the amounts paid out in claims, which included to their members and non-members. Styles said he estimated the claims
nib paid out to New Zealand customers, for example, by their disclosure documents to the Australian stock exchange on which it is listed.
nib chief executive officer Rob Hennin said the claims data demonstrated the important role private health insurance plays in providing peace of mind to customers in their time of need.
“In the quarter to September 2017 we paid almost $30 million (claims data excludes GST) in claims to over 12,000 customers. The reality is that if these customers did not have their nib health cover they would have faced the financial burden of these costs on their own which can add additional stress during what is often already a difficult period,” Hennin said.
“However, health insurance isn’t just for those who are sick, we encourage and support people to use their health insurance to help them afford regular check-ups which may lead to early detection of ill-health and allow them to seek treatment potentially before it’s too late.”
Hennin said private health insurance had helped fund the healthcare needs of Kiwis, and, as our population continues to grow, as well as age, there is an increasing demand for government funding, which he said is simply not sustainable.
“We see a real opportunity for private health insurers, like nib, to assist in meeting this need by playing a stronger role in facilitating access to healthcare for Kiwis. This will in turn help reduce the ever increasing health cost burden on the government by encouraging individuals to take greater responsibility for their healthcare needs,” he said.
nib entered the New Zealand market five years ago by acquiring TOWER’s health book – the health insurer now holds 16% of the market, covering over 200,000 people across the country.
HFANZ said a significant chunk of claims funded healthcare for the over-60 age group, which jumped 7.7% to $532 million over the year to the end of September – the first time it topped the half billion dollar mark.
Styles added that health insurance was funding significant volumes of healthcare for older New Zealanders, and particularly for elective surgery.
“As the ageing population swells the ranks of the over 60s, together with their healthcare costs, health insurance is playing an increasingly important role in complementing public sector funding, so that more New Zealanders are able to access healthcare when they need it,” he remarked.
Styles continued that the number of Kiwis with health insurance had increased for the 10th quarter in a row in September, up 5,000 to 1.374 million.
This year has seen some of the strongest annual growth since HFANZ started offering coverage in 2001. Styles said much of this appeared to have come from an increase in numbers of people with employer-subsidised health insurance as part of an increased focus on wellness in the workplace.
HFANZ members include Accuro,
AIA NZ, HealthCare, MU, Police Health Plan,
Southern Cross, Sovereign Heath and UniMed.
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