What you should know about health insurance is that health insurers are paying out a record amount to fund surgical procedures. In the 12 months to the end of June 2013 private insurance paid $904 million in claims.
As a comparison, the private health insurers are funding 150,000 elective surgical discharges annually, about the same number as the public system. Public health expenditure has grown as a percentage of GDP from 5.1% in 1993/94 to 10.30% in 2012.The surgical volumes funded by private health insurance has also doubled in the same period.
12% of New Zealand’s population is currently over the age of 65 and consumes 40% of the health spend. By 2051 the portion of the population over 65 is estimated to double, with the total share of the health spend at present rates increasing to 63% of the health spend. Between now and 2051, even allowing for per capita expenditure growth this will add an extra 1.7% of GDP to the health spend
The future is that public health spending on elective procedures will increasingly be rationed. The main priority will be on acute services and those most in need. This means the thresholds for accessing elective surgery will have to increase placing pressure on those who need elective surgery to fund it themselves.
Health insurance is one way in which people can help manage their health risks and access surgery in the event it is required. What you should really know about health insurance is the sooner you obtain health insurance while you are young, the less likely you are to have pre-existing conditions excluded and the more likely you are to use it as you get older.
