US Supreme Court decision ranks health funding No. 1 issue

June 29, 2012

MEDIA RELEASE – FOR IMMEDIATE USE

US Supreme Court decision ranks health funding number one issue

Today’s landmark decision by the United States Supreme Court shows future funding of healthcare is the biggest public policy issue of our time, according to Health Funds Association chief executive Roger Styles.

In upholding the Affordable Care Act, the Supreme Court had recognised that the US health system had to tackle rising costs and gaps in coverage, he said.

“All countries will see rising costs over the next 20 years as the population ages and health care costs surge. How they respond from a policy perspective – and indeed how soon they respond – will determine which countries manage the best,” he said.

Mr Styles said the looming health funding crisis was a bigger problem in New Zealand than the retirement savings debate, and it was one where New Zealand was more exposed than most other OECD countries.

“We have a dangerous over-reliance on public funding compared to the OECD average, and have the fifth–highest Government health spending of any OECD country as a percentage of GDP,” he said.

“Rebalancing of public and private shares will occur in New Zealand in the next two decades. The question is whether it will be planned or haphazard. I believe a planned approach will deliver better health outcomes all round.”

Mr Styles echoed the call from the New Zealand Treasury, who in its recent long-term fiscal update called for broad public debate on the policy options for future health funding.

The US decision mandates compulsory health insurance and includes tax subsidies for employer contributions.

Mr Styles said HFANZ was not suggesting those measures in New Zealand, although he suggested there were modest reforms which could stimulate greater health cover at little cost.

“The 30 percent of New Zealanders with health insurance are already saving the Government hundreds of millions annually in health care costs. If more people had health cover, then savings to public health budgets would be even greater,” Mr Styles said.

ENDS

© Scoop Media