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?

This increase is effective 10 months into the year. Your latest confirmation certificate is presenting you 10 months at the old rates and only 2 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 6 May 2025. 

When do premiums take effect?

Your current and future policies will roll over during the payment run on 6 May 2025. 

The final payment of your old 2024 -2025 rates will occur in instalment#23 on 22 April 2025. Instalment#24, which occurs on 6 May 2025, will automatically be adjusted to your new premium rate. This will also update your future instalments #25 – #27 until the policy renewal on 1 July 2025.

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

The Police Health Plan 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. If we do not, we risk the future stability and viability of the PHP.

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, particularly with New Zealand’s public health system under stress. Unfortunately, the cost of these surgeries is higher than ever before, and this has had a major impact on the price of premiums across the health insurance market.
 

Over the past three years, we have been able to support our members by delaying premium increases. This has resulted in us passing $15 million of our reserves back to members because of claims costing more than premiums. We must now start to recover these costs so that we can hold at least six months’ worth of claims costs in reserve. This will safeguard the health plan against any future inflation shocks and ensure that we can continue to pay your claims and support your health and wellbeing. 

How are increases calculated? 

The premiums reflect the actual cost of providing healthcare cover to people in each demographic group across our membership. 

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

The new system that members use to submit claims has very little impact on these new premiums as the investment in that system occurred in years 2022 – early 2024. The ongoing cost of the new system accounts for less than 0.01% of the premiums that we collect annually.

 
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 to build the system are spread over the life of the system, and we expect to make significant efficiency gains from the new streamlined processes.

Will there be another increase in July 2025?

No. The increase that is effective 6 May 2025 is bringing forward the increase that was scheduled for July 2025.

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. 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, including our existing members, and we need to collect enough premiums to pay everyone’s claims. 

Will you be putting my premium up again?

We only increase premiums to offset the cost of claims. If claim costs rise, we must review premiums. Our focus is on providing a cost-effective solution for members. In the past we reviewed premiums annually. However, as the pace of change in inflation has increased, we have been forced, along with all other health insurers, to respond more frequently to these increases in claims costs.

What is the change to five-year age bands?

We previously had our premiums grouped into five-year age bands and calculated premiums based on the cost of claims across the five-year band. 

Every five years, on your birthdate, you would get a premium increase, and, in some cases, this increase could be significant. We have made the decision to smooth the impact of these age-related premium increases by moving to single-year age groups between the age of 19 and 69. For those under 19 and over the age of 69, those groups will remain. We will continue to calculate the cost of claims for each separate age group across the membership and fairly apply premiums that meet that cost. 

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. If you are on either the Plus or Basic plans, you can consider downgrading to either the Basic or Surgical plans. 
 

If you don’t currently have an excess on your plan, you can reduce your premium by electing to pay a $500, $1,000, or $5,000 excess on any surgical claim. Applying an excess on your policy results in lowering your premium while still providing access to healthcare through the three plans that we offer members. Any excess on your plan means that you would need to fund the first $500, $1,000, or $5,000 for each surgery you require.

Downgrading your cover is a decision that we can help support and advise you through. If required, we can also provide you with help from our financial advisors to give you deeper understanding of any change.
Reducing your cover can significantly reduce your premiums, bearing in mind that you would then need to cover a greater proportion of your medical treatment yourself. Our premium rates start from as low as $7.64 per fortnight ($199.21 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 insurances@policeassn.org.nz 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.