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Why is the Cost of Health Insurance So High?

The high cost of health insurance so high, not just in New Zealand, but everywhere. The price is driven by multiple factors, including the rising cost of medical treatments, advanced diagnostic tools, and age related health risks. With premiums increasing year after year, it’s important to understand the factors driving these costs and why maintaining health insurance coverage is still crucial. Let’s dive into the reasons behind the high cost of health insurance and how Acorn Insurance can help you find the most cost effective rate tailored to your needs.

 

 

The Ever-Increasing Cost of Drugs and Medical Breakthroughs

One of the primary drivers of high health insurance costs is the skyrocketing price of drugs and medical treatments. Medical research and development are constantly advancing, leading to new and more effective treatments and medications. While these innovations improve healthcare outcomes for us, unfortunately they come at a significant cost. Insurance companies must cover these expenses, which in turn raises the premiums for their policyholders.

 

Advanced Medical Devices and Diagnostic Tools

The use of advanced medical devices and diagnostic tools has revolutionised healthcare, allowing for earlier detection and better management of diseases. However, these high-tech devices are expensive to develop, produce and maintain. As healthcare providers adopt these technologies to improve patient care, the associated costs are passed on to health insurance providers and, ultimately, to consumers.

 

Policy Coverage Variations

Health insurance policies can vary greatly in terms of what they cover. Some comprehensive plans include coverage for rare disease treatments and advanced therapies, which can be extremely costly. While these policies offer extensive protection, they also come with higher premiums. It’s essential to carefully review what each policy covers to ensure you’re not paying for unnecessary services. The options available can be overwhelming, and this is where Acorn Insurance can help.

 

Age and Health Factors 

Age is another significant factor influencing the cost of your health insurance. As we age, the likelihood of requiring medical attention increases. Older individuals are more prone to chronic illnesses and conditions that require ongoing treatment, which raises the cost of their health insurance. Despite these higher costs, having health insurance is vital to cover unexpected medical expenses and manage chronic conditions effectively.

 

Why You Should Still Have Health Insurance 

Even with the cost, health insurance remains an essential safeguard against financial strain caused by medical emergencies. Without insurance, the cost of hospitalisation, surgeries, and treatments can be staggering, and the strain on public healthcare means we can’t always be guaranteed life saving treatments and surgeries. Health insurance provides peace of mind and financial security for operations and particular medications you may need, ensuring you can still receive the necessary care without the burden of excessive medical bills.

 

Looking for the Best Rate on Health Insurance? How Acorn Insurance Can Help

At Acorn Insurance, we understand the complexities of choosing the right health insurance plan for your budget. We work closely with you to identify your unique needs and find a policy that offers the best value. We use industry research tools to compare products from New Zealand’s major insurance companies, ensuring you get the coverage you need and nothing you don’t.

Get in touch with Acorn Insurance here, and find out how you can benefit from our expertise in navigating the insurance market. This way, you can be sure you’re getting the most cost effective solution. This will also be tailored to your specific circumstances, providing you with the best possible rate.