Christchurch, New Zealand — A retired Christchurch couple is grappling with a devastating blow to their fixed income: a 70% jump in their monthly health insurance premium, forcing them to consider canceling a policy they’ve held with not-for-profit insurer UniMed for over 40 years. The increase—from NZ$655 to NZ$1,107—comes as UniMed battles “unprecedented” medical cost inflation, a trend rippling across New Zealand’s health insurance sector.
The couple, who spoke to Chris Lynch Media on condition of anonymity, described the hike as financially unmanageable. “We’ve barely claimed on this policy in four decades—we’ve been loyal customers,” they said. “Now, on a fixed retirement income, NZ$1,107 a month is impossible. We’re being priced out of coverage we’ve relied on for years.”
Their frustration is compounded by two other concerns: their adult son, who remains on their family plan, is facing a 50% premium increase, and the couple says UniMed provided no meaningful advance public notice of the steep hikes. “So many older policyholders like us are on fixed incomes—we suspect a lot of people will have to drop their coverage entirely,” they added.
The new premiums take effect on August 15, 2025, and UniMed interim CEO Lynne Hayman has acknowledged the unusual severity of the increase. In a statement, she attributed the hike to “unprecedented claims cost inflation” that has outpaced the insurer’s revenue, pushing UniMed into a NZ$7.1 million deficit in the 2024 financial year.
“Premium adjustments are a last resort, but they’re essential to keep our business solvent and continue providing coverage to those who need it,” Hayman said. She noted that rising costs of medical treatments, along with larger and more frequent claims, have strained UniMed’s finances. To mitigate future costs, the insurer is introducing two key measures: a NZ$200,000 lifetime cap on spinal surgery coverage, and expanded negotiations with healthcare providers to lower service fees.
UniMed’s struggles are not isolated. Consumer NZ, a non-profit advocacy group, confirms that health insurance costs have surged across all major New Zealand insurers in recent years. “Since 2023, we’ve seen premium increases ranging from 18% to 36%,” said Rebecca Styles, Consumer NZ’s head of research. “This isn’t just a UniMed issue—it’s a sector-wide problem driven by rising medical inflation, higher drug costs, and increased demand for specialist care.”
Styles warned that older policyholders face the biggest risks, as switching insurers to avoid hikes can result in losing coverage for pre-existing conditions—a critical concern for retirees who may have chronic health issues. “If you’ve had a policy for decades, your current insurer likely covers conditions that a new provider would exclude,” she explained. “Canceling or switching isn’t a simple fix.”
For those facing unaffordable hikes, Styles urged a cautious, strategic approach. She recommended three key steps:Negotiate with your current insurer: Ask about adjusting coverage—such as raising deductibles (excesses) or switching to a “hospital-only” plan (which excludes routine doctor visits but covers major treatments) to lower premiums.
Avoid hasty cancellations: Going without health insurance can leave individuals vulnerable to massive medical bills, especially for unexpected procedures like surgery or cancer treatment.
Consult a licensed financial advisor: An advisor can help weigh options, including whether partial coverage or a different policy structure better fits a fixed income.
For the Christchurch couple, the clock is ticking. With the August 15 deadline approaching, they say they have yet to decide whether to cancel their policy or cut other expenses to afford the new premium. “After 40 years, it feels like a betrayal,” they said. “But we don’t have many choices—this is what retirement on a fixed income looks like.”
UniMed has stated it is “working with individual policyholders” to explore coverage adjustments, but for many retirees, the damage may already be done. As Styles put it: “These hikes aren’t just numbers on a bill—they’re forcing people to choose between health security and basic living costs.”
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