Hi guys,
Hope you have had a great few weeks. I just wanted to chat briefly about medical insurance, and specifically premiums. We have seen these under massive pressure for the last 18 months, with increases in the 20% range. I almost choked on my coffee last week when an email from a provider had a 40%, yes, 40%, increase on premiums.
So what’s causing it?
There are a heap of contributing factors, but put simply, it is due to a massive increase in claims over the last 2 years. Depending on the company and the data you believe, claims were up 25% last year and on track to be similar again this year. Now I don’t want to oversimplify something I don’t fully grasp, but this is as a result of pressures in the public health system, and more being referred into the private system.
So what can you do about rising premiums?
Please get in touch if you want to chat through or look at options. A couple of things to look at:
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Having an excess, or adding a larger excess (i.e. having a $1,000 excess vs $0 can reduce premiums by around 35%).
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Reviewing any optional add-ons and working out what they cost, what they are covering, and if they are still worthwhile for your situation.
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Making sure your health insurance cover includes sufficient cover for non-government-funded drug treatments.
On a personal front, we had our first set of school holidays with Pia. We had the classic juggling act that many of you roll with in the first week, making sure what needs to happen does, while also trying to enjoy some family time. The second week we headed to Nelson for some wider family time, and ended up leaving early on the Friday morning before the rain and floods really set in.
Until next month, stay safe and chat soon.
Kieran Sutherland
Financial and Business Adviser
p. 03 377 3693