Hospital Insurance Premiums Are Rising - What Members Should Know

Recent media coverage about health insurance premium increases has struck a chord with many New Zealanders and understandably so.

We’re hearing from members who feel caught out by rising costs, particularly those who have paid premiums for many years and now face increases that feel difficult, or even impossible, to absorb. When budgets are already under pressure, these changes can force people into decisions they never expected to have to make.

If you’re facing an increase to your Hospital insurance, it’s worth taking time to understand what’s happening, what your options really are, and where you can get help, before making any changes.

Why health insurance premiums are increasing

Hospital insurance premiums tend to rise over time. The two key drivers are an increase in demand for healthcare services and at the same time there is an increase in the cost to deliver these services.

Some of the major factors contributing to current increases are:

• The cost to deliver healthcare continues to rise, including the provision of, hospital services, specialist care, and new and often expensive medicines and medical technologies
• Demand for private healthcare has increased, particularly as pressure on the public health system grows
• Medical inflation historically runs higher than general inflation
• New Zealand has an aging population and as people age, the number and the cost of claims rises

Unfortunately, all these factors have combined to increase the cost of hospital insurance premiums.

While these factors help explain what’s happening across the sector, they don’t make the impact any easier for members who are trying to manage household costs. 

When cancelling feels like the only option

For some members, cancelling health insurance can feel unavoidable especially when premiums rise faster than income.

But health insurance decisions unfortunately aren’t just short-term budgeting choices. They often have long-term consequences that aren’t obvious at the point of cancellation.

Depending on your circumstances, cancelling cover may mean:

• Losing access to certain types of cover permanently
• Facing stand-down periods if you try to rejoin later
• Having pre-existing conditions excluded in the future
• Paying significantly higher premiums if cover is reinstated

In other words, cancelling isn’t always a decision you can easily reverse. That’s why it’s important to understand what you’re giving up, not just what you’re saving, before making a final call.

Reviewing your cover doesn’t have to mean giving it up

If rising premiums are putting pressure on your budget, there may be options worth exploring before cancelling altogether.

A review of your cover can sometimes help by:

• Adjusting your excess
• Removing optional extras that may no longer be relevant
• Making sure you’re not paying for cover you don’t need
• Ensuring your policy still fits your stage of life

These options aren’t always clear from policy documents alone, and they’re not always well explained - which is why support can be helpful.

How HealthCarePlus and Monument Advisers can help

IHealthCarePlus isn’t here just to explain what’s happening, we’re here to help you navigate it with support that’s practical, personal, and tailored to your situation.

A key part of that support is our long-standing partnership with Monument Insurance and their network of experienced Financial Advisers who work closely with HealthCarePlus members.

Here’s how this partnership helps you:

1. Real Guidance, Not a Hard Sell

For over 30 years Monument Advisers have been helping our members understand their insurance choices, including health insurance without pressure or judgement. They’re there to listen first and help you make sense of your options, not to push products you don’t need, and there is no cost for their advice.

2. Clarity Around Complex Decisions

Insurance policies can be filled with technical language and subtle details that make it hard to know what you’re really paying for or what you might inadvertently give up if you cancel cover.

A Monument Financial Adviser can help you understand:

• What your current policy actually covers
• How your cover fits with your broader financial picture
• The potential consequences of cancelling or changing cover

That clarity alone can reduce stress and help you make decisions with confidence.

3. Tailored Support and Next Steps

Whether you decide to keep your cover, adjust it, or explore alternatives, an adviser can:

• Help you compare options
• Explain risks and trade-offs
• Support you through the decision process

They can be an advocate in your corner, which is especially valuable when costs are rising and decisions feel heavy.

A final word

Rising health insurance premiums are often treated as a budgeting issue but in reality, they’re much more than that.

Health insurance is one of the few financial decisions where timing matters. The cover you have now, the terms you’re accepted on, and the premiums you pay may not be available again later.

Once cover is cancelled, the opportunity to return under the same terms and conditions can be limited or gone entirely.

That’s why taking time to understand your options matters. Whether you ultimately keep your cover, adjust it, or decide it’s no longer right for you, the most important thing is that the decision is informed, considered, and made with a clear understanding of the long-term implications.

Support is available and starting with a conversation can make all the difference.