New Zealand: Health Insurance

Overview

Health insurance is an important consideration for anyone planning to spend some time in New Zealand, whether a few weeks or months or permanently. If you make frequent trips a year for periods of up to three months, the cheapest insurance cover is usually to have an annual travel policy (see Holiday & Travel Insurance, New Zealand Fact Sheet), although you must ensure that it provides adequate cover. When comparing the level of cover provided by different health insurance schemes, the following points should be considered:

• Does the scheme have a wide range of premium levels and are discounts or special rates available for families or children?

• Is private hospital cover available and are private rooms available at local hospitals? What are the costs? Is there a limit on the time you can spend in hospital?

• Is dental cover included? What exactly does it include? Can it be extended to include extra treatment? Dental insurance usually contains numerous limitations and doesn’t cover cosmetic treatment.

• Are there restrictions regarding hospitalisation, either in New Zealand or other countries?

• What is the qualification period for special benefits or services?

• What level of cover is provided outside New Zealand and what are the limitations?

• What is the cover regarding pregnancy, hospital births and associated costs? What is the position if conception occurred before joining the insurance scheme?

• Are medicines included?

• Are convalescent homes or spa treatments covered when prescribed by a doctor?

• What are the restrictions on complementary medicine, e.g. acupuncture, chiropractic, massage, naturopathy and osteopathy? Are they covered? Must a referral be made by a doctor?

• Is life insurance or a disability pension included, possibly as an option?

• Are possible extra costs likely, and if so, what for?

• Are spectacles or contact lenses covered, and if so, how much can be claimed and how frequently?

• Is the provision and repair of artificial limbs and similar health aids covered?

International Health Policies

It’s also possible to take out an international health insurance policy, which may be of particular interest to people living in New Zealand temporarily, or those whose work involves a lot of travel or who work part of the time overseas. Some policies offer members a range of premiums, from budget to comprehensive cover. All policies offer at least two fee scales, one covering the whole world, including North America (and possible other high cost areas), the other excluding North America. Most policies include a full refund of ambulance, emergency dental treatment, home nursing (usually for a limited period), hospital, outpatient and repatriation charges. All policies include an annual overall claims limit, usually from $200,000 to $2,000,000 (the higher the better, particularly for North America).

Some comprehensive policies provide a fixed amount for general medical costs (including routine doctors’ visits) and elective dental, maternity and optical expenses. Premiums range from around $1,750 to over $5,000 per year, depending on your age, level of cover and the areas covered (if North America is covered, premiums are much higher). If you don’t require permanent international health insurance, you should consider a policy which provides limited or optional cover when you’re overseas. All bills, particularly those received for treatment outside Australia, must include precise details of treatment received. Terms such as ‘dental treatment’ or ‘consultation’ are usually insufficient.

If you’re living or working in New Zealand and aren’t covered by the national healthcare scheme, it’s risky or even foolhardy not to have private health insurance for you and your family. Whether you’re covered by a local or foreign health insurance policy makes little difference (except perhaps in cost), provided you have the required level of cover, including international cover if necessary. If you aren’t adequately insured, you could be faced with some extremely high medical bills. When deciding on the type of policy, ensure that the insurance scheme covers all your family’s health requirements. If your stay in New Zealand is short, you may be covered by a reciprocal agreement or by a private health insurance scheme. Make sure you’re fully covered before you receive a large bill.

When changing employers or leaving New Zealand, you should ensure that you have continuous medical insurance. For example, if you and your family are covered by a company health fund, your insurance probably ceases after your last official day of employment. If you’re planning to change your health insurance company, ensure that no important benefits are lost. When changing health insurance companies, you should inform your old insurance company if you have any outstanding bills for which they’re liable.

Everyone who’s resident in New Zealand or a visitor from a country with which New Zealand has a reciprocal agreement is covered by the national healthcare scheme, which provides either free or reduced cost medical treatment. However, while treatment under the state health scheme is considered adequate, many people also have private health insurance. The main purpose of this is to pay the cost of doctor’s consultations, prescriptions and dentistry (which aren’t covered by the state healthcare system), and also to pay for treatment in private hospitals, thus circumventing public hospital waiting lists. Private health insurance schemes also provide other benefits, such as cover for loss of earnings due to illness. Nearly 50 per cent of New Zealanders have some form of private health insurance, which can be purchased from a variety of insurance companies of which the largest is Southern Cross Healthcare, Private Bag 99-934, Newmarket, Auckland (freephone 0800-800 181, www.southerncross.co.nz).

The cost depends on what’s covered and which company you insure with. For a family of four a hospital-only policy costs from $500 to $1,500 per year and a comprehensive policy from $600 to $4,500 per year. Private health insurance costs have rocketed in recent years as more people make claims to avoid waiting for treatment at public hospitals, and they’re likely to continue increasing at a rate well above inflation, particularly for the elderly. The Consumers’ Institute (www.consumer.org.nz) publishes helpful information on health insurance, including advice on whether you really need it!

© Survival Books Limited 2006

“Buying a Home in Australia & New Zealand” 1st Edition, Graeme Chesters.
Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Australia & New Zealand” 1st edition, by Graeme Chesters.

For extensive information about buying a property in Australia & New Zealand, you can purchase this book at www.survivalbooks.net