Bad backs the cause of most expensive health insurance claims
Surgery for bad backs has topped the list of most expensive surgical claims funded by New Zealand health insurer Southern Cross in the year to 30 June 2021, with the highest individual claim coming to NZ$222,000
Eight of the top 10 most expensive claims paid by New Zealand’s leading health insurer were for spinal fusions – surgery which permanently connects two or more vertebrae in the spine – with four claims topping a whopping $200,000.
Southern Cross Chief Medical Officer, Stephen Child, said that the expense and volume of these claims demonstrate the value and benefits of health insurance. “Whether you require expensive surgery such as spinal fusion, or if you are one of thousands needing a more common procedure, such as the removal of a skin lesion, Southern Cross members can have the assurance they are covered for unexpected events.”
Helping to dampen healthcare costs
The next two most expensive claims were for radical neck dissection surgery, which involves the removal of cancerous tumours, with each claim totalling more than $150,000. Child said spinal fusion is a highly complex procedure and therefore can be very costly.
Southern Cross is a not-for-profit Friendly Society which operates solely for the benefit of members. For the year ending on 30 June 2021, it paid more than three million claims valued at $1.12 billion. When looking at what were the most common claims paid by Southern Cross, the highest by volume was cryotherapy procedures (34,000 individual claims), followed by excisions of skin lesions (31,000) and minor surgery performed by a GP (26,000).
Although the individual claim costs can be high, Southern Cross Health Society’s Affiliated Provider programme has helped to dampen rising healthcare costs, achieving more than $220 million of savings for members through the programme since 2012.
Meanwhile, Southern Cross Health Society Group has released its annual financial results, highlighting strong membership growth and the delivery of a solid surplus.