A Christchurch retired couple is confronting the possible end of their 40-year health insurance coverage with UniMed, after the not-for-profit insurer hit them with a 70% monthly premium increase—jumping from NZ$655 to NZ$1,107. The steep rise, tied to surging medical costs, has left the pair, who say they “barely claimed” over four decades, struggling to afford coverage on a fixed income.
“We’ve been loyal to UniMed for more than 40 years, and now we’re being priced out,” the couple told Chris Lynch Media. “On a fixed income, this just isn’t sustainable.”
Their predicament is not isolated: their son, previously included on their family plan, is also facing a 50% premium hike. The couple voiced frustration over the lack of advance public notice, warning that many older policyholders—who often rely most on health coverage—could be forced to drop their plans entirely.
The new premiums are set to take effect on August 15, 2025. UniMed interim CEO Lynne Hayman acknowledged the “unusually steep” increase, attributing it to “unprecedented claims cost inflation” that has strained the insurer’s finances. UniMed reported a NZ$7.1 million deficit in the 2024 financial year, and Hayman emphasized that premium adjustments are “essential to maintain solvency” and keep providing coverage.
To address the financial pressure, UniMed is rolling out cost-saving measures: these include a NZ$200,000 lifetime cap on spinal surgeries and negotiations with medical providers to lower service costs.
The couple’s experience reflects a broader trend across New Zealand’s health insurance sector. Consumer NZ’s Rebecca Styles confirmed that premiums have risen sharply across all major insurers, with increases ranging from 18% to 36% since 2023. She urged older policyholders to approach changes cautiously, noting a key risk: switching providers can result in the loss of coverage for pre-existing health conditions—a critical concern for those with long-term health needs.
Instead of switching, Styles advised policyholders to first explore adjustments with their current insurer, such as raising excess payments (the amount paid out-of-pocket before insurance kicks in) or switching to “hospital-only” plans, which cover inpatient care but exclude some outpatient services to reduce costs. She also recommended consulting a licensed financial advisor for personalized guidance tailored to individual health needs and budgets.
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