Health cover up
Latest health insurance figures are just that healthy.
Wednesday, October 24th 2007, 6:38AM
Latest figures from the Health Funds Association shows that 20,000 more people had cover in the year to September 30 than in the previous year.
HFANZ Executive Director, Roger Styles, says there has been large growth in the take up of major medical policies, which provide cover primarily for surgical treatments, with a small reduction in comprehensive policies.
"There are now more elective procedures funded privately than in the public system, with the bulk of them being paid for by health insurance. The majority of the $600 million in claims cost relates to surgical procedures, so there is a huge benefit to the public system from people having insurance."
Styles estimates that 1.38 million people have health insurance.
The trend away from comprehensive policies and towards major medical insurance continues. The net 4,900 increase in lives covered in the September quarter represents an increase of 8,300 people covered by major medical insurance and a reduction of 3,400 having comprehensive insurance.
Major medical insurance now accounts for 869,100 of the 1.381 million lives covered, or 62.9% of those covered by health insurance. Comprehensive health insurance accounts for just 512,300 lives covered, or 37.1% of policies.
The age groups showing the biggest increases in health cover are younger people (under 29) and people in the 60-69 age bracket.
"There are a range of factors influencing this, including demographic changes," Styles says. "With an aging population, there is an expected increase as more people with insurance are moving into these older age groups.
Higher birth rates are also a factor behind the increase in the 0-4 age group, with New Zealand recently recording the highest number of births since 1972."
Other factors 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 they expect. A strong economy is also a factor in take up rates.
Health insurance claims paid in the September quarter totaled $166 million, taking claims paid in the 12 months to September 2007 to $602 million. This is an increase of $36 million or 6.4% on the total claims paid in the 12 months to September 2006. In addition to growth in the number of insured persons, the increase is attributable to both an increase in the number of claims and an increase in the costs of treatment. This is the first time that total claims costs have exceeded the $600 million mark for a 12 month period.
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