tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 22nd, 6:31PM

Insurance

rss
Latest Headlines

HFANZ renews call for health insurance tax breaks

The Government must make policy changes to reverse the slide in the amount of New Zealanders with insurance cover.

Tuesday, February 7th 2012, 11:06AM 3 Comments

by Benn Bathgate

That's the view of the Health Funds Association of New Zealand (HFANZ) - whose members account for around 99% of health insurance policyholders in New Zealand - outlined in a briefing paper for incoming Minister of Health Tony Ryall.

It says there is an imbalance in health funding and the subsequent rising cost of providing pubic healthcare HFANZ chief executive Roger Styles said, "policy consideration must be given to rebalancing the public and private contributions to health spending."

Currently 31% of New Zealanders, or 1.4 million people, have health cover, but worryingly for insurers the report says insurance levels are trending down, "with a forecast drop in coverage in coming years, particularly for older age groups."

To increase the number of people covered there needs to be specific policy measures that encourage people to buy health insurance, Styles says.

At present health coverage in New Zealand peaks at 45% for the 55-59 age group, dropping to 25% by age 70-74.

The report makes two recommendations to boost the take up of health cover, a rebate on premiums for those aged 65 and over, and the removal of fringe benefit tax (FBT) on employer contributions to workplace health plans.

Styles said they were two targeted measures that would boost take-up, but that the Government response to assessing both had been poor.

"Despite a clear direction from the Associate Minister of Health for policy engagement with the industry on this [rebates for over 65s], progress has been very disappointing," said Styles.

"The process has dragged on over a year-and-a-half with no final report on the proposals for the rebate."

On the issue of Government engagement on the FBT, the report was even more critical.

"Progress in term of engagement on the issue of FBT on employer contributions to health insurance group plans appears to have been non-existent."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

« Cut your commission to compete, says SovereignQuality commissions attract quality advisers, says Ballantyne »

Special Offers

Comments from our readers

On 10 February 2012 at 11:48 am Malcolm North said:
We have heard the same thing coming out off this office for the last ten years
On 13 February 2012 at 1:38 pm Lindsay said:
Just because medical insurance is going backwards doesn't mean tax breaks are the answer. The answer actually lies with the insurers, most of whom seem intent on losing money. Shareholders in private facilities must love them. It is the only branch of insurance that allows the "repairer" to control the process and costs. "Got medical insurance - welcome to the private hospital, could have booked you into the public one, but then there would be no charge" On the scale of things, life, disability, income covers all rank higher up the scale of importance.
On 23 February 2012 at 1:12 pm Snoop said:
If insurers can fix it what do you suggest they do?

My view is health is much more tangible than other benefits and so is ranked more important.

As the premium is much higher its a simpler way to get commission.
Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Chubb's latest champion
Young maths prodigy takes out actuarial award.

New book: Unlocking group insurance
Christchurch adviser Corey Williams has released a new book helping advisers and employers put group insurance schemes in place.

Insurer gets warning from RBNZ
Geneva Finance's insurance subsidiary Quest Insurance been given a warning from the prudential regulator.

Big Shout Out
We wanted to give a Big Shout Out to Jack Newman for his fund raising efforts over the weekend.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x