Insurance firm nib has announced the expansion of its First Choice network, which it says has delivered more than $1 million in claims savings in its first year of operations.
Launched in September 2017, the network was designed to help tackle huge surgical cost differences across New Zealand and, in turn, ensure members did not have any unexpected costs.
“We think it’s absurd that having a knee replacement in Auckland costs 23% more than the national average but if you have the same surgery in Christchurch you’ll pay 10% less,” nib Group executive benefits and provider relations Justin Vaughan said. “There’s no clear reason or evidence to support these higher fees or that there’s better quality healthcare.”
Now, nib has expanded the popular network to include additional medical treatments for different specialties.
“We’re aiming to have 90% of New Zealand medical professionals in network to help us continue to better manage claims costs and keep premiums affordable for our members,” Vaughan noted.
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nib said 90% of its members currently visit a First Choice network provider for treatment with over 4,500 payments made for surgeries each month.
“We know our members don’t like when they have to pay an out-of-pocket cost for medical treatment. By visiting a First Choice provider, it means they don’t have to, with 100% of their approved costs covered,” Vaughan added. “Importantly, members can still choose to see an out-of-network doctor, however, they’ll have to contribute towards the additional costs they charge.”
