Attention: Health Reporter

Media Statement For Immediate Release,
tuesday 31 January 2012
“Private Health Insurers Fudging Financial Self-Interest Agenda”

“Private health insurers are fudging their financial self-interest agenda in their ‘briefing papers’ to the government,” said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today. Mr Powell was referring to Health Funds New Zealand’s representation to government to promote health insurance.

“The private health insurers are superficially using Treasury scenarios to paint a picture of a health funding crisis in order to justify government subsidisation of health insurance. This is because the number of New Zealanders taking out private health insurance is declining, presumably due to the poor state of the economy.”

“They embellish the potential for their private health insurance to impact on public hospitals. Health insurance is largely applicable to elective (non-urgent) surgery which is only part of what public hospitals do. It has no or limited relevance, for example, to more costly and complicated emergencies, acute treatments and chronic illnesses. The case for taxpayer subsidisation of private health insurance is unproven at best.”

“If real financial gains are to be made, the government needs to invest in the public hospital specialist workforce so that more specialists could be involved in practical leadership. If this investment was made, much of the financial wastage could be removed and our public system would become much more cost effective.”

“Private health insurers are fully entitled to promote their products to the public but it is wrong to exaggerate public hospital funding difficulties to justify subsidisation,” concluded Mr Powell.

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