Corporate Wellness Programs

Health insurers paid 9 per cent more in claims in the year ending June than they did for the same time last year, according to the latest figures from the Health Funds Association (HFANZ).

Insurers paid $797 million claims in the year, up $72m on the year to June 2009. They paid 86.82 cents out of every premium dollar collected, up 1.12 cents on the previous year.

HFANZ executive director Roger Styles said over the past five years, claim costs had grown by 9 per cent a year, 80 per cent of this related to elective surgery and associated costs. This growth had been high due to increased demand, expansion of services funded, and medical inflation, Mr Styles said.

Costs shifting from the public sector also contributed to the claims.
The number of people insured dropped slightly by 5171, or 0.37 per cent, to 1388,782. But Mr Styles said overall, "coverage tends to be holding up pretty well" in spite of the global financial crisis. Health insurance coverage is correlated with employment numbers, and many of those insured are members of group health insurance schemes – of which some are part-funded by employers.

"The easing of coverage may simply reflect the continuation of subdued employment levels." Premium income was up 8.5 per cent on the June 2009 year to $918m – a much higher annual increase than previously with 4.9 per cent recorded for the March year and 5 per cent for the previous June year. Noticeably, only about 10 per cent of people with health insurance or 138,912, are above the age of 65.

Sovereign product and marketing manager David Drillien said insuring more people in this age group will ease pressure on the public health system.