MINISTER WELCOMES DROPPING OF ADVERTISING CAMPAIGN

Health Minister Bill English today welcomed State Insurance's decision to drop its latest health insurance advertising campaign, which he said was scare-mongering and based on unsubstantiated information.

"State's campaign was based around a recent newspaper article which said there would be significant numbers of people coming off elective surgery waiting lists in addition to the number we already know will not get surgery. It quoted Ian Powell from the Association of Salaried Medical Specialists.

"Mr Powell advises that not only was he not contacted by State about using the article, his comments were not accurately reflected in it in the first place. Mr Powell said he had made it clear to the journalist that the numbers he talked about were speculation only, based on a lot of 'ifs'.

"In addition, most health insurance policies have exclusion clauses which mean that people with existing conditions cannot get coverage, so to target people currently on waiting lists is dishonest.

"State Insurance should be marketing the merits of its product instead of trying to frighten people into taking out medical insurance.

"In the past health insurers have tried advertising based on fear. They may increase their membership, but they also encourage over use, which means costs go up and these get passed on to members as increased premiums. The sorts of premium hikes we've seen in the health insurance market do turn people away in the long run.

"The Government's Booking System is designed to give people certainty about whether or not they will get publicly-funded surgery and the timeframe within which they can expect to get it. Decisions about whether they get that surgery will be made by doctors based on need. People with a higher level of need will get surgery first.

"Private health insurance will continue to be a worthwhile option for people who want surgery within a quicker timeframe or for conditions that have a lower level of need than the public system can provide.

"Health insurance companies need to take a responsible approach to marketing their products," said Mr English.