A retired couple in Christchurch say they may have to cancel their decades-old health insurance policy after their monthly premium jumped 70%, from NZ$655 to NZ$1,107. The sharp increase comes as not-for-profit insurer UniMed battles rising medical costs.
“We’ve been with UniMed for over 40 years and barely claimed,” the couple told Chris Lynch Media. “Now we’re being priced out. On a fixed income, this just isn’t affordable.”
Their son, previously on their family plan, is also facing a 50% hike. The couple expressed frustration over the lack of public notice and said many older policyholders may now be forced to drop coverage.
The new premiums take effect from August 15, 2025. UniMed interim CEO Lynne Hayman acknowledged the unusually steep hike, blaming “unprecedented claims cost inflation.” The insurer posted a NZ$7.1 million deficit in FY2024 and says premium adjustments are essential to remain solvent.
Hayman added that medical costs and larger claims are outpacing revenue, and UniMed is introducing cost-saving measures, including a $200,000 lifetime cap on spinal surgeries and price negotiations with providers.
Consumer NZ’s Rebecca Styles confirmed the trend, citing rising health insurance costs across all major insurers. “Premiums have gone up 18–36% since 2023,” she said. Styles warned older people to consider their options carefully, noting that switching providers can lead to loss of coverage for pre-existing conditions.
She encouraged policyholders to explore options with their current provider, such as raising excesses or shifting to hospital-only plans, and to consult a licensed financial advisor for tailored advice.
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