Major medical cover proving popular

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The trend for people to take out major medical health insurance over comprehensive over is continuing, according to the latest figures from the Health Funds Association.

Friday, August 10th 2007, 4:17PM

It says in the three months to June 30 there was a small increase in the number of New Zealanders who had health insurance. The net increase of 7,800 takes the total lives covered to 1.377 million.

"The net 7,800 increase in lives covered represents an increase of 11,600 people covered by major medical insurance and a reduction of 3,800 having comprehensive insurance," the association says.

Major medical insurance now accounts for 860,800 of the 1.377 million lives covered, or 62.5% of those covered by health insurance. Comprehensive health insurance accounts for just 515,700 lives covered, or 37.5% of policies.

When the numbers are broken down into age groups it is apparent the growth has been in people aged 60 and over.

The number in the 60-64 group was up 5,600 (+6.9%), and in the 65-69 the numbers were up 4,500 (+8.8%).

"For all persons age 60 and over, the annual increase in lives covered by health insurance was 12,900. This is an increase of 6.2% from June 2006."

The association suggests factors which maybe driving this increase are that "people are increasingly accepting the fact that the public system can not deliver many elective procedures to either the quantity or the timeliness that people expect from the health system.

"This means lower numbers of existing policyholders quitting their policies as they get older, despite increases in premiums and reductions in disposable income. In addition there are demographic changes at work, with an aging population meaning similar increases are likely in future years."

There has also been increases in the number of younger people taking cover. HFA statistics show the number of people under five with cover increased by 2,800 (4.8%), there was a similar increase for the 20-24 age group while the increase in the 25-29 age group was 1700 (2.8%).

Health insurance claims paid in the June quarter totaled $156 million, taking claims paid in the year to June to $590 million. This is an increase of $26 million or 5% on the total claims paid compared to the corresponding period last year.

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