Why Your Grandparents Didn’t Need Private Health Insurance (But You Probably Do)
By Chloe Harland
In the past, New Zealanders could rely more on the public health system for timely and comprehensive care. The population was smaller, health issues were less complex, and there was less demand for specialist services. However, today, longer wait times, higher health risks from modern lifestyles, and an aging population make private health insurance increasingly important for quicker access to quality care and protection against rising medical costs.
Disclaimer:
I understand the financial pressures many New Zealanders face, especially with the rising cost of living. Not everyone can easily afford private health insurance. My intention is not to trivialize these challenges but to provide information that might help you make the best decision for your health and well-being.
The Role of Private Health Insurance
Having basic private health insurance has become a necessity in New Zealand. Without it, you might wait years for treatment through the public system, especially for non-urgent conditions.
As of recent data, around 1.45 million New Zealanders have private health insurance, accounting for about 27-28% of the population. This number has steadily increased, reflecting the growing concern over public system wait times and the desire for quicker access to treatments and specialist consultations not covered by public healthcare.
The Role of ACC
ACC covers injuries from accidents or treatment-related incidents, providing comprehensive support and compensation. However, ACC does not cover conditions caused primarily by degeneration (aging or disease). For example, conditions like age-related osteoarthritis or chronic pain are not eligible for ACC coverage and are managed within the public health system.
Challenges of the Public System
Navigating New Zealand’s public health system can be frustrating due to underfunding and limited resources. This often leads to long wait times for non-urgent specialist or surgical care. For instance, as of May 2023, nearly 30,000 people had waited over four months for elective surgery, and over 50,000 had waited more than 16 weeks for a first specialist assessment. These numbers reflect real people experiencing stressful delays in receiving care.
Personal Experience: The Case for Private Care
Take my husband, for example. He recently needed hernia surgery. While waiting for public treatment was an option, we chose private surgery due to the long wait times for non-urgent cases. Now, I must confess—his hernia was likely aggravated by his enthusiastic yet misguided attempts at lifting weights beyond his capabilities, coupled with poor technique. (I’m pretty sure he won’t read this!) The hernia wasn’t covered by ACC since it wasn’t caused by an accident. Fortunately, private health insurance allowed us to bypass the long wait times and get the treatment he needed promptly.
Understanding Health Insurance Costs
Basic private health insurance in New Zealand can cost anywhere from $30 to $100 per month, depending on the provider and coverage level. It’s essential to compare policies to find one that fits your needs and budget. This information is shared to help you make informed decisions without any sponsorship from insurance providers.
Cost of Living Considerations
Amid the current cost of living crisis, many New Zealanders are tightening their budgets. However, private health insurance can be crucial in preventing unexpected medical expenses from causing financial strain. As the saying goes, “Don’t wait for a rainy day to buy an umbrella.” While it might seem like an extra expense, the peace of mind and timely medical care it offers can be invaluable, especially when faced with long wait times in the public system.
Why This Matters
Understanding the scope of ACC and the limitations of the public health system is crucial. ACC covers accident-related injuries, but other health issues might require long waits in the public system. Private health insurance can bridge this gap, offering quicker access to elective surgeries, specialist consultations, and non-funded medications, significantly reducing wait times and improving your quality of life.
In conclusion, while ACC provides essential services, it is not a catch-all solution. Being informed about ACC’s coverage, the realities of the public health system, and the benefits of private health insurance can help you make the best decisions for your health. If you have questions or need guidance on ACC claims, I’m here to help.
