Health insurers call for debate on incentives
The Health Funds Association this week released a report advocating tax breaks for health insurance, and employers being able to buy healthcare from district health boards or other providers for their employees.
Thursday, October 14th 2004, 9:28PM
by Rob Hosking
Finance Minister Michael Cullen has rejected the report’s conclusions, saying it represents a move to user pays and also that its projections of increased health spending are overly-pessimistic.
Cullen has though earlier raised concerns about the increase in the public health budget, which has been growing faster than GDP over the past decade, regardless of which party has been in government.
“While I can understand Cullen’s view it’s important to remember that the government is only one party involved in health care,” AIA managing director Bernard McCrea says.
The insurance industry has indicated a willingness to work more closely with the government in dealing with the rising health care costs, McCrea says.
“And I think this report is a good place to start from. It’s a debate we need to have and all parties need to be involved.”
Business New Zealand struck a similar note, saying that New Zealand needs to debate the best way to deal with rising costs of healthcare as the population ages.
"Differing views on cost inflation and productivity in the health sector doesn't mean we shouldn't debate the issue,’ says acting chief executive Tim Cleary.
"The Association has made a reasonable suggestion that we consider the Australian system which allows a 30% rebate on health insurance premiums.
"In many other areas we are considering harmonising our practices with Australia's - this is an important issue that deserves as much debate as possible."
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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