Health premiums to rise

By MONIQUE DEVEREUX

Southern Cross Healthcare members can expect premiums to go up again as the company moves to cover rising costs and the demands of an ageing population.

The not-for-profit organisation is New Zealand's largest private health insurer and has hundreds of thousands of members.

This month's company magazine, sent to members over the past two weeks, outlines why premiums will increase early next year. Graphs show the cost of an average claim has risen almost $50, or 7.6 per cent a member.

The company says people are living longer and demanding more healthcare, factors which result in higher medical costs.

Last year, surgical costs rose 10 per cent, primary care costs 7 per cent and dental and optical care costs 3 per cent.

Southern Cross chief executive Roger Bowie said the premiums had yet to be confirmed but would be in place by around March. For some members that will mean a second increase in just over a year.

In February, Southern Cross increased premiums up to 30 per cent for its 311,600 policy-holders aged over 45.

Older members make more and costlier claims.

The company also introduced a new age band, for 46 to 64-year-olds, to try to make the premiums fairer.

Mr Bowie said further age bands would be introduced in the new year.

nzherald.co.nz/health