Private health system for N.Z. ‘unfair’

Press, 20 February 1988, Page 33

Private health system for N.Z. ‘unfair’

PA Wellington A private health system would be unfair and probably unworkable in New Zealand, said the Minister of Health, Mr Caygill.

New Zealand was too small to maintain a comprehensive competitive insurance scheme, he told the annual meeting of the Gerontology Association’s Canterbury branch.

“In insurance terms there are too many ‘bad risks’,” Mr Caygill said. Old people fell into this category. People over 65 took almost half of all patient days in New Zea-

land hospitals and a quarter of patient days were taken up by people over 75.

Elderly people were responsible for four times as much health spending as other people. Under a private health insurance scheme, the elderly, disabled and mentally ill would have difficulty getting cover.

Of the third of New Zealanders who had private insurance cover, most were relatively well and made the least demands on the health system. In a private health sys-

tem individuals got the health service they could afford, Mr Caygill said.

“But we know ... that three-quarters of the people over 60 have little or no income apart from their national superannuation.

"In other words, the group that makes the biggest demand on hospital care ... is not in a position to pay for expensive or long-running medical treatment,” Mr Caygill said.

The health services reviews were not intended

to look at ways of replacing the public health system, but at making it more efficient. Mr Caygill said New Zealand spent about the O.E.C.D. average on health care while per capita income was considerably less than the O.E.C.D. average.

The Government was seeking to ensure that the health service provided both equity and efficiency.

“We want to be fair but, we also want to obtain the best value for money we can,” he said.