{"id":442729,"date":"2026-05-24T08:17:09","date_gmt":"2026-05-24T08:17:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/442729\/"},"modified":"2026-05-24T08:17:09","modified_gmt":"2026-05-24T08:17:09","slug":"medical-costs-higher-than-inflation-as-pressure-on-public-system-grows-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/442729\/","title":{"rendered":"Medical Costs Higher Than Inflation, As Pressure On Public System Grows"},"content":{"rendered":"

\"Radio<\/a>
\nSunday, 24 May 2026, 6:38 pm
Article: RNZ <\/a><\/p>\n

Kate
\nGreen <\/a>, Health Correspondent<\/p>\n

People with
\nhealth insurance are using it earlier and more often, as
\npressure on the public system grows and the cost of care
\nincreases.<\/p>\n

Figures from Insurance company AIA show
\nmedical costs are outpacing inflation, with heart claims
\nfacing some of the steepest increases.<\/p>\n

Chief customer
\nofficer Maddie Sherlock said New Zealanders relied on
\ninsurance more than ever – AIA paid $177 million in total
\nmedical claims in 2025, an increase of $10m on
\n2024.<\/p>\n

“We are seeing more people seek private
\ndiagnosis and treatment earlier, because of public wait
\ntimes, and that people are really looking for certainty and
\nfast access to care,” she said.<\/p>\n

One of the biggest
\ndrivers for claims was heart disease.<\/p>\n

Heart claims
\nmade up $93.5 million of AIA’s total payout of $790m to more
\nthan 789,000 New Zealanders last year.<\/p>\n

Claims data
\nshowed scans, procedures and hospital stays were notably
\nmore expensive for heart-related conditions.<\/p>\n

Heart
\nattacks made up the biggest proportion of heart-related
\nclaims at 31 percent, followed by heart disease at 24
\npercent, diagnostics at six percent, valve-related diseases
\nat five percent and cardiac arrhythmias at three
\npercent.<\/p>\n

According to the Heart Foundation, heart
\ndisease caused a death every 90 minutes, making it one of
\nthe five major non-communicable diseases that made up 90
\npercent of deaths, along with cancer, diabetes, respiratory
\ndisease and mental health.<\/p>\n

Advertisement – scroll to continue reading<\/p>\n

The group most at risk of
\nheart disease were men aged 40-69.<\/p>\n

AIA data showed
\nhigh-value medical claims, including chemotherapy and
\ncomplex spinal procedures, were also on the rise, thanks to
\nimprovements in diagnostic capability and treatment options,
\nbut also due to pressure on the public
\nsystem.<\/p>\n

Financial Services Council chief executive
\nKirk Hope said their data also showed people were claiming
\nmore often and claims were becoming more expensive, because
\ntreatment costs had increased significantly since the Covid
\nera.<\/p>\n

According to Aon’s 2025 Global Medical Trend
\nRates Report, medical inflation jumped from 7.4 percent in
\n2024 to 14.5 percent in 2025.<\/p>\n

“One of the steepest
\nrises recorded in the Asia-Pacific region and it clearly far
\nexceeds general inflation, which is at about 3.1,” Hope
\nsaid.<\/p>\n

Elective surgery inflation was between 10-100
\npercent, he said.<\/p>\n

The primary drivers were the rising
\ncosts of technology, facilities and staff – with the latter
\npotentially caused by shortages.<\/p>\n

New Zealanders
\nremained under-insured compared to OECD comparator
\ncountries, remaining inaccessible for many, Hope
\nsaid.<\/p>\n

“Health insurers have struggled to break
\neven.”<\/p>\n

Most health insurers were making a loss on
\nhealth insurance.<\/p>\n

“Health insurers paid out more than
\n$2.4 billion in claims in the last year and that’s against
\n$2.5 billion in premiums – but some of that in the life
\ninsurance space as
\nwell.”<\/p>\n

\n\u00a9 Scoop Media<\/a><\/p>\n

\"Radio<\/a><\/p>\n

New Zealand’s public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.<\/p>\n

Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.<\/p>\n

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