Frustrations boil over for Southern Cross member

By ANGELA GREGORY

Bonni Wilde doubts whether Southern Cross can put all the blame for payment delays on its computer system.

The company says it ran into problems early last month but - like many policyholders who have contacted the Herald - the Rotorua woman can trace the slow responses back much earlier.

Despite company assertions that it could clear claims in 10 working days, one claim lodged last August took 24 working days and one in mid-September took 28.

Mrs Wilde put a claim in the mail in mid-November and was not paid until the end of the first week of this month.

But the worst blow to the chartered accountant's professional pride came when she received overdue notices from the hospital where she had had day surgery at the end of September.

"It was very embarrassing."

Mrs Wilde is one of many disgruntled Southern Cross members who have spoken to the Herald in recent weeks.

Their stories vary, but similar themes of embarrassment at bill reminders and strains on personal finances feature.

Frustration boiled over for some as they hit a brick wall of long telephone waits, unanswered messages and ambiguous letters.

The excuses that the "hiccups" were due to a new computer system were greeted with scepticism. Further questions were raised with reports of staff redundancies and relocation of the claims department to Hamilton.

Mrs Wilde suspects the delays were more about bad planning than computer hitches.

"You would think the last thing you do when installing a new system is get rid of competent, skilled staff."

She also criticises the company's poor public relations skills. "Why don't they just front up and say what went wrong instead of the old 'blame the computer' line?"

For George Galbraith, a 49-day wait to get paid for his $800 skin specialist's bill put his meagre income under strain.

The unemployed 63-year-old from Orewa, with a wife in hospital on a sickness benefit, found the delay a major worry.

As an over-60-year-old, he has to pay higher premiums.

"This service is appalling, especially to people like myself on a benefit."

At one point he received a letter of apology reassuring him he would be paid, but asking him not to phone. Instead he waited patiently - but anxiously.

"There was no good in ringing. It was not going to advance anything."

A retired Auckland University professor, Dr Brian Earnshaw, is still waiting for the company to pay a California hospital for medical expenses from two visits last July.

Southern Cross told him it had accepted the claims, and added it would seek a 10 per cent discount.

He then received a bill from the hospital for the unpaid 10 per cent on the $US1415 bill.

The hospital also said the other $US1160 bill had not been settled.

Dr Earnshaw, who is in his 70s, said he had found the mess-ups humiliating. "It is very embarrassing to receive letters which impugn my credibility."

He said he was thinking of leaving Southern Cross, which he joined 30 years ago.

"At that time they said you would pay the same fee for life ... Initially it was also a worldwide scheme."

He also resented company comments that young members had been subsidising older ones.

"I was one of those young members [30 years ago]. It seems somewhat unfair."

Southern Cross spokesman Dr Michael Ashby said the problems with Dr Earnshaw's claim appeared to lie with the US hospital or insurer.

Dr Earnshaw said he had once joined with a group of Southern Cross members to challenge the company, which granted them some concessions.

"But I feel they just make it up as they go along...we are actually thinking of leaving them."

Dr Earnshaw said the Government should be concerned at any signs of problems with the country's largest private health insurance company.

"It is saving the country's taxpayers a lot of money. The Government should be keeping an eye on its own interest in the system."

Dr Earnshaw said if at face value the company had had computer problems, then it erred in failing to perform due diligence.

"It's an admission they created the problem for themselves to start with."

Dr Earnshaw did not believe a health insurance company should necessarily struggle.

"I had a health insurance scheme with Blue Cross in the United States...it was brilliant, and covered us everywhere in the world."

Full coverage:
nzherald.co.nz/southerncross