"Dropping health cover completely should really be a last resort, because once coverage ceases, it is difficult to pick up later and get coverage for pre-existing conditions".
"Many people have had to make some difficult choices in the last year, although I would urge people to talk with their insurer (adviser) rather than simply dropping their health cover. In many cases there will be options for changing the plan they are on to something more affordable, possibly with a change in the level of excess or coverage".
The above two statements were from the Chief Executive of the Health Funds Association of NZ.
We can not deny that pressures on our discretionary dollar combined with the increases in the cost of general house and contents insurance following the Canterbury earthquake has resulted in many NZ'ers cancelling their health insurance - in the year to March 2012 the total number of lives insured was 1,351 million, a decrease for the full year of 25,700 people!
On the other hand whilst the number of lives covered has decreased as shown above the value of insurance claims is certainly not showing any signs of decreasing, as shown below. And the costs for specialists; medicines; surgery and rehabilitation is not going to get cheaper!
By 2008 NZ had the OECD's fifth highest public health spending as a proportion of GDP! We also now have a dangerously high reliance on public funding - just 19% of total health spending is privately funded in NZ, compared with an OECD average of 28% and Australia's 33%.
These factors have major implications for how NZ funds health care going forward - given our aging population pointing to rocketing health care costs over the next 20+ years.
What this means
People will have to pay a greater share of their own health care costs; either out of their own pocket or by way of personal health insurance... the modest increase currently proposed to prescription charges is nothing compared to what the future holds!
People have time to adjust and make arrangements now; such as taking personal responsibility for their health care at an early age.
ACC
Last year, ACC received 56,000 applications for funding for elective surgery; while they approved most; the level of declines resulted in some 2,300 complaints for review of ACC's decision! And these are only for "accident" not illness.
Advice
You should always get advice when considering taking out health insurance. Each persons situation and health is different to the next - so personalised advice is key to ensuring people have the best possible health insurance.
Most important is being aware of all the options available - the industry is not clear cut; the health sector is dynamic and products and poolicy wordings continue to evolve which is why we recommend everyone should talk to an insurance adviser who has expertise in this area.
Options to reduce the cost of health insurance:
* Higher Excess * Limited Cover * Specialists & Tests *
* Family Cover * * Best DoctorsTM * New product *
Health insurance takes away the uncertainty of your future health care!
As we've said at the very start; cancelling your insurance should be absolutely a last resort - get advice; have a coffee and chat with an adviser today - make the choice to be in control of your health care.
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