With ACC and public healthcare, is health insurance worth it?

New Zealanders are a lucky bunch. For instance, we can enjoy the benefits of free and low-cost public healthcare. And if that wasn’t enough, thanks to ACC, everyone is also covered for accident-related injuries.

But as good as our healthcare system is, it also has its limits. And this is where health insurance can step in. Not sure how it all works? Talking with an experienced insurance adviser can help you ensure that your financial future is protected against life’s curveballs. And in the meantime, read on to learn more.

Cover for non-urgent (yet debilitating) conditions

One thing must be said first: public hospitals do a great job at treating emergencies and acute medical conditions. Should we ever need acute surgery, we can all rely on this all-important safety net.

But what about non-urgent conditions that, while non-immediately life-threatening, can affect your quality of life if left untreated? Think about things like joint replacements, hernia repair, tonsillectomies, and even screening tests like colonoscopies and gastroscopies. These are just some common examples of ‘elective’ (non-urgent) procedures, and in the future, you may need one to feel better or even detect a medical problem early.  

Unfortunately, when it comes to non-urgent surgery, there’s only so much that public healthcare can do, and waiting lists are long. So, unless you can afford to go private and pay hundreds or thousands of dollars, you may need to put up with it until your turn finally comes around – and by then your health condition may be substantially worse.

But there’s an alternative option, and that’s health insurance. It’s designed to give you fast access to private treatment and diagnosis, so you don’t have to wait in line to receive care. And this is not all.

Cover for non-Pharmac funded treatments

As you’ll know, Pharmac is the agency that decides what medications to subsidise. Working with a limited budget, they have to make hard decisions about whether to fund new Medsafe-approved medicines or not.

As a result, many treatments, including certain life-extending cancer medications, are yet to receive the go-ahead for funding.

Patients who want to access non-Pharmac funded treatments have two options: pay the cost in full (which can often add up to many thousands of dollars) or have health insurance with cover for unfunded medications.

Most insurers offer this benefit, but the amount covered varies widely depending on the policy. Like to explore all options available? Talking with an insurance adviser can help you understand what’s out there, and the other many ways that health insurance can benefit you.

Cover for non-accidental conditions

ACC is a powerful scheme, covering everyone in New Zealand who is injured in an accident. But while accidents certainly happen, illnesses are also common and that’s not something that ACC can help you with.

If you’d like to access fast treatment or expensive medications to get back on your feet, then having health insurance is a good idea. Depending on your policy, health cover may also pick up the bill for mental health-related services, which ACC won’t cover.

Lastly, a word about ACC weekly compensation. While the scheme may pay up to 80% of your gross pre-accident income if you can’t work because of an injury, it’s not designed to replace your income in case of serious illness. For those scenarios, you may want to look at income protection or trauma insurance.

Do you need health insurance?

The health insurance question is a big one. As we’ve seen, health cover can provide peace of mind and extra options when it comes to your personal and financial wellbeing. From shorter wait times through to flexible care, there are many reasons to think about it.

And remember: the healthier you are when you get cover, the more comprehensive your plan will be, meaning you’ll likely be protected for any medical conditions that may arise in the future.

Unsure what policy is for you? Feel free to seek help. An insurance adviser can talk you through the options, benefits and add-ons available, so you can be confident in your choice. Click here to find a financial adviser specialised in Personal Risk near you today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.