Southern Cross healthcare protest grows

Southern Cross member Val Baker thinks it is unfair that older people should be penalised for their age. Photo / APN

An Auckland retiree's plight over $5000 annual Southern Cross healthcare premiums has resulted in other members complaining.

The Rev Dr Terry Creagh said he was considering cancelling his policy and other members such as Val Baker agreed.

"I am over 65, and also think that it is unfair that older people should be penalised for their age.

"A lot of us are totally healthy and claims made are virtually nil. Perhaps Southern Cross should look at the claims paid out per person on a case-by-case basis and adjust the premium based on the amount of claims paid out."

Susan Hodgson, 44, cancelled her membership even though she had had it since arriving in New Zealand aged 6.

"When I married, my husband joined and then my two sons. Over the past two years it started becoming expensive and we started dropping the plans down. Then we dropped my husband and then my two sons and after a year and more increases I decided to drop mine," she said, adding that she had made only one claim on the policy.

Vanessa Crabb said that at 55 her premiums were starting to rise.

"I have been told by friends over 65 that once they reached that age their premiums soared. Many of us have paid thousands over many years and not claimed anything like those in costs. So the question remains: over the life of the membership what amount has been claimed versus paid?" she asked.

Herald readers were responding after Creagh said the society was penalising its older members and the annual $5000 in fees he paid for himself and his wife was exorbitant and unethical.

Another Southern Cross member said he had been with the society for more than half a century.

"My premiums increase annually. Many of my pensioner friends have had to resign as they are unable to afford the premiums [if they rely mainly] on the pension. This creates an additional burden on the public system."

Under pressure from shareholder advocate and accountant Bruce Sheppard, the society has agreed to a premium review.

A spokeswoman defended the society.

"While we understand the Rev Creagh's concerns, he has received very good value from his health insurance and our data shows that this is true for many older members."