Insurance provider Southern Cross is making changes to a range of its healthcare policies and has notified customers of a number of benefit cuts, according to reports.
In an article by Newstalk ZB, it was outlined that 801,000 premium Southern Cross customers received a letter informing them that their funeral allowance would no longer be covered in their plan. Additionally, a public hospital cash allowance and surgical procedures for sleep apnoea were also removed. The changes are expected to take effect from December 10.
Despite the policy adjustments, customers will not see a reduction in the amount they pay for their insurance, it was suggested.
Without the changes, the company would have had to increase premium rates by a lot more, Southern Cross chief marketing officer of health insurance products Chris Watney said.
“We know that premium affordability is a concern for our members,” she told the publication. “And we know that members value both the day-to-day use of their insurance, and the peace of mind that comes with knowing that the ‘big stuff’ like cancer or other life-changing diagnoses are covered.”
Watney explained that funeral allowance, which was limited to $2,500, was not related to healthcare service and was generally available under life insurance policies.
“Its removal from our policies offers an opportunity to reduce overall claims cost and their impact on premiums,” she added.
