FAQS - 1 July 2023
Why do premiums need to go up, especially when Police pay rises are currently uncertain?
With inflation of claim costs and a low return on investments, premiums have been rebalanced to reflect the actual costs of providing healthcare to each age bracket. We are very aware of the inflationary pressures that members are facing and which have formed a key part of the Police Association’s pay negotiation arguments.
Has the cover changed?
Yes. We tried to keep cover changes to a minimum but regulation and experience meant we did need to update a few things. For a full understanding of the changes we really recommend you read through the policy document, but you can also look at our summary of changes webpage.
View Summary of changes - 1 July 2023
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.
I have never made a claim. Why am I getting an increase?
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 Comprehensive or Basic cover and have never made a claim, check your entitlements as you may be able to lodge some claims.
What if I can’t afford it?
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) that will significantly discount premiums. Our rates start from as low as $5.03 on the Surgical plan.
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.
Why not just increase premiums for new members?
Costs have gone up 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, so if claim costs rise, we have to review premiums. Our focus is on providing a cost-effective solution for members and we normally review premiums annually.
What is my new premium?
You can see your total premium on your renewal certificate. Our new rates are included below and can also be found in the online portal on the website policeassn.org.nz, (under the Health Plan section). If you have not yet created a login on our website, click the login tab and follow the instructions.
I do not pay for one of these people. Why have I received the premium notification?
As the primary member, you are the policy owner. If someone else pays part or all the bill, you need to ensure they receive the information on premiums.
Someone else pays for my premiums. Why didn’t they get a letter?
For privacy reasons, we have sent the renewal letter to the primary member, ie, 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 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.
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 upgrade to a lower or no-excess option later?
Yes. You will need to complete a policy amendment form. Note that there is a stand-down period we may include additional conditions or exclusions to your policy.