The health insurance industry is parasitic on our public health system, taking people's money, providing them with th easy, cheap stuff, then sending them straight back into the public health system for anything which might cost them money. But not enough people are buying it anymore. So they're doing what all NZ industries do when the going gets tough: demanding a government subsidy:
Health insurance is becoming too expensive for some New Zealanders and it's prompted a call from the industry for tax breaks to help.They're wanting full tax deductibility for premiums, and an exemption from fringe-benefit tax for employer-paid schemes. Which would obviously be great for them, and great for the rich people using their system to try and jump the queue. But any money spent subsidising their profits like this would be far better spent directly through the public health system. And spent there, it would benefit everybody, not just health insurance executives and their shareholders.Research from the Financial Services Council, which represents life and health insurers, shows that a third of people with health insurance have downgraded or reduced their cover in the past year.
This is not an industry that should be subsidised. Instead, like foodbanks, the government should be actively trying to drive health insurers out of business, by building a stronger public health system that provides for everyone's needs.
