What does my confirmation certificate tell me?

Your replacement annual confirmation certificate tells you the total premium you will pay for the year. For transparency we’ve broken it into two amounts (time at old rate and time at new rate).

Why is the new amount lower than the old amount?

The increase was effective 7 months into the year. Your latest confirmation certificate is presenting you 7 months at the old rate and only 5 months at the new rate.

Where do I find my fortnightly deductions?

Your fortnightly deductions can be found within your Health Plan Portal under ‘Instalment Plan’.

If you need help navigating the portal, please see our video guides here.

Log into the Health Plan Portal

What is my new premium?

You can see your total annual premium on your confirmation certificate under the Health Plan Portal. Your instalment plan in the portal details each fortnightly deduction. At the time of renewal, this will display your current policy premiums and future premiums beginning 28 January 2025. 

When do premiums take effect?

Your current and future policies will roll over during the payment run on 28 January 2025. 

The final payment of your old 2024 rates will occur in instalment#16 on 14 January 2025. Instalment#17, which occurs on 28 January 2025, will automatically be adjusted to your new premium rate. This will also update your future instalments 18 – 27 until our next renewal on 1 July 2025.

How are increases calculated? 

The premiums reflect the actual cost of providing healthcare cover to people in each demographic. We are a member-based organisation, we do not pay dividends and our expenses are very low by industry standards.

Why do premiums need to go up, especially when Police pay rises are currently uncertain?

PHP is not for profit, but we must collect enough premiums to offset the cost of claims.  If the cost of claims outweighs the premiums we collect, we have no choice but to pass on these costs. Even with the increases that we are implementing now, we still expect claims costs to outweigh premiums by $5m this year.

Why is there such a large increase this year?

More New Zealanders are turning to private hospitals and relying on health insurance for their surgeries and the cost of these surgeries is higher than ever before. We assure you Police Health Plan is not alone in facing these challenges which are largely caused by the failure of the public health system to meet the demand for surgeries.  

How much is the cost of the new Health Plan Portal contributing to this premium increase?

Really not that much. The main driver of the increase has been the rise in the number of surgical claims. PHP pays meticulous attention to its expenses, and this extends to our new policy administration system. The capital costs of the system will be amortised over the life of the system, and we expect to make significant efficiency gains from the new streamlined processes.

I have never made a claim. Why are my premiums increasing?

Insurance is about cost sharing. If you have never made a claim, that means 
you have been fortunate to enjoy good health and your premiums have paid for the claims of your peers who have not been as lucky. If you have a health condition in the future, and need to make a claim, that will also be paid for out of everyone’s premiums. If you have Plus or Basic cover and have never made a claim, check your entitlements as you may be able to lodge some claims.

Why not just increase premiums for new members?

Costs and the number of claims has increased for everyone, and we need to collect enough premiums to pay everyone’s claims. 

Will you be putting my premium up again?

If we can avoid it, we do not increase premiums. However, premium income must cover claims expenses. If claim costs rise, we must review premiums. Our focus is on providing a cost-effective solution for members and we normally review premiums annually.

Someone else pays for my premiums. Why did I get a letter?

For privacy reasons, we have sent the renewal letter to the primary member, i.e. the policy owner. If someone else is paying all or part of your premium, it is your responsibility to advise them of the premium changes.

What if I cannot afford it any longer?

Please review your plan type and excess level. Reducing your cover will reduce your premium, bearing in mind that you would then need to cover a greater percentage of your medical treatment yourself. Don’t forget our $5000 Surgical excess option (meaning you pay the first $5000 of any procedure) which significantly discounts premiums. Our rates start from as low as $6.04 per fortnight ($157.37 annually) on the Surgical plan.

What do excess options mean?

You keep your current plan cover, but the premiums will be cheaper if you select a voluntary excess, which means you agree to pay the first $500, $1000 or $5000 on every surgical claim. The excess is deducted from the total paid for each surgical claim.

If I choose to take an excess option, when is it applied?

The excess applies from the date the related lower premium is paid.

Are we planning a higher excess option for a cheaper premium?

Not at this stage. A $5000 excess already effectively excludes many smaller procedures from the plan. Historically, we have not had many members take this option up. If we get demand from our members for a higher excess as an option, then we would consider it.

How do I change to an excess option?

To downgrade your plan, you can email [email protected] or we can take your request over the phone.

If I choose to have an excess now, can I elect a lower or no-excess option later?

Yes. You will need to complete a policy amendment form. Note that there is a standdown period and we may include additional conditions or exclusions to your policy.

I am retired and want to stay in the Welfare Fund. Do I have to stay with PHP?

If you are over 65 and retired, you may be eligible for an exemption. Contact us to find out. Retired membership options can be viewed on our website.