Private health insurance: A catch-22 many Nelson, Tasman families are facing

If you live in Nelson, you don’t need to be told the public health system is under strain. We see it in the news and hear it in everyday conversations. Nelson Hospital is doing its absolute best under very tough conditions.

The staff there are exceptional, and a few of us at Castle Trust have experienced that care firsthand recently. We’re incredibly grateful for what they do. But the reality is they are under-resourced, and that pressure is being felt by all of us.

Why more Kiwis are turning to private healthcare

Long waitlists, staff shortages, and delayed procedures mean more people are turning to private healthcare – not for luxury or convenience, but simply to get treatment in a reasonable timeframe.

Around 10% of elective surgeries are now outsourced to private hospitals. When the public system can’t keep up, that demand is pushed into the private sector. This is the catch-22: more demand, limited supply, and rising costs.

Why health insurance premiums keep rising

Private medical claims in New Zealand have been increasing by around 25% per year over the past three years. Insurers are paying out more than ever, particularly for diagnostics, cancer treatment, and orthopaedic surgery.

That pressure shows up in two ways:

• Premium increases of 25–40% on some plans
• Policy changes such as reduced benefits, tighter definitions, or added co-payments

When the public system can’t meet demand, those costs don’t disappear – they eventually land with policyholders.

When the public system can’t pay the bill, it ends up on someone’s doorstep – and for most Kiwis, that’s either you or your insurer.

What you can do

We can’t stop premiums from rising, but we can help you make smarter decisions.

At Castle Trust, we help clients:

• Review their policy regularly to ensure it’s still fit for purpose
• Adjust excess levels to manage premiums without losing meaningful cover
• Navigate claims – having an adviser in your corner makes a real difference

Most importantly, don’t make changes without advice. Cheaper isn’t always better when it comes to your health.

Our role is to help you

At Castle Trust Financial Planning, we work with New Zealand’s leading medical insurers. Our role is to help you understand the fine print, navigate policy changes, and support you when you need to claim.

With the public health system under more pressure than ever, private health insurance is no longer a “nice to have” – it’s peace of mind.

If you’d like to discuss health insurance for your family or employees or review your current medical cover or understand how rising costs may affect you, get in touch.
We can’t change the premiums – but we can help you navigate the policies and be there when it matters most.