Tower launches cover for non-Pharmac funded cancer drugs

It has overhauled its Premier Health trauma add-on option known as Serious Condition Lump Sum Option, introducing a Cancer Assistance Benefit.

This benefit will pay an additional amount of up to twice the sum insured if a non-Pharmac funded chemotherapy drug approved by Medsafe is recommended by the registered specialist for cancer treatment. This payment is over and above the trauma payout.

Tower Health & Life head of products and marketing Grant Hill says  the future cost of non-Pharmac funded cancer drugs is unknown with an ageing population placing greater demand on New Zealand's limited health dollar combined with pharmaceutical companies investing significant capital in trying to develop the next cancer wonder drug.

He says if non-Pharmac funded cancer drugs were covered under a health product's base module there would be a significant risk that it could drive much higher levels of claims' inflation.