Health insurance claims breached three-quarters of a billion dollars for the first time last year, according to industry figures released today by the Health Funds Association (HFANZ).Executive director Roger Styles said the $764 million in claims paid in
Health insurance claims breached three-quarters of a billion dollars for the first time last year, according to industry figures released today by the Health Funds Association (HFANZ).
Executive director Roger Styles said the $764 million in claims paid in the year to the end of December highlighted the significant contribution the private sector was making in funding healthcare in New Zealand.
The December 2009 quarter's annualised 9.8 percent claims growth was down from the peak of 13.2 percent in December 2008.
"Health insurers obviously want to contain health inflation wherever possible, as increased treatment costs ultimately mean higher premiums."
But Mr Styles said a significant amount of that additional cost represented access to services which were not previously available, or to which the public sector had limited people's access.
He cited the recent opening of a private Auckland radiotherapy clinic, which offered private patients an alternative to waiting for cancer treatment in the public sector, as being a good example of health insurance delivering extra benefits.
"Of course this adds a little to the cost, but it represents value that policyholders are getting from their insurance."
Mr Styles said he expected the rate of health cost growth to slow further this year, and supported government initiatives to rein in cost growth in the health sector, including a focus on wage-setting.
Lives covered remained static in the quarter, at 1.4 million, with premium income for the December year up 5.7 percent on the previous year to $875 million.
