We welcome you to the NEST blog – the place and space for us to share words and wisdom about the topics most important to you, when thinking about insurance, health and wellness and other important things when it comes to living and leading a happy and healthy life.
This week we’re focusing on the health insurance topic of Medical Inflation.
It sounds serious and it is. Simply put, medical inflation is the rising cost of medical care. In New Zealand, in recent times, this has been in the region of around 9 – 11% each year. That means the rate is significantly higher than the country’s inflation rate. In addition to this, over a five year period from 2007 – 2012, the market population of people able to afford health insurance in New Zealand dropped from 1.5 million to 1.25 million people.
The problem with the above is that when medical treatment costs are growing faster than inflation costs, insurers are then making higher claim payments, and guess what – you’re the one that’ll pick up the tab. How? Those policy renewals and annoying letters regarding increased premiums? You bet. Medical inflation impacts your base premium.
There is an alarming trend that is occurring in response to the above. In many households, they see these rising costs and simply don’t know what to do – leaving families and businesses uninsured or paying too much in case of medical concern. And it’s occurring across all ages.
We believe the rising cost of medical treatment is also a signal of its importance to a happy and healthy society – providing people with the care they deserve. To neglect this care by “winging it”, that’s a dangerous place to be. At NEST, we’re all about reducing these concerns and dangers by putting in place the best possible policies for one’s situation – be that to support a family, a business or both. Either way, we’ve got you covered.
We’ll listen, discuss and make informed decisions that consider all possible options. We can look at these rising premiums and then look at your needs, and tailor policies specific to the type of cover that’s suitable for you. It can make a big difference, paying only for what you need, so you can counter these rising costs yet remain covered.
We think so too. Chat to us about how medical inflation is affecting your health and your wealth. Let’s get you sorted.
From Onny and the team – cheers for reading.