Breaking down Public healthcare, Private healthcare, and Health insurance

Ever wondered what the difference between public healthcare and private healthcare actually is? We break down private healthcare vs public healthcare and where that leaves a gap for health insurance to get you the treatment you need.

What is the public healthcare system?

In Aotearoa, the public healthcare system is designed to provide universal access to essential services. It is funded primarily through general taxation and most medical care is free or subsidised for residents. Services include:

● GP visits (with subsidies available depending on your circumstances)

● Medical tests

● Specialist referrals

● Hospital care (including emergency care and elective surgeries)

● Maternity services

● Accident Compensation Corporation (financial support if you get injured)

When it comes to specialist or hospital care, your GP will refer you and you’ll go on a waitlist to receive care, free of charge. The trade-off? You often won’t get to choose your doctor or when you’ll be treated, especially for non-urgent issues.

How does private healthcare work?

Private healthcare offers faster access, more flexibility, and greater choice…but it comes at a higher cost. You can decide when and where you're treated and by whom, which can be especially valuable if you have specific health needs or want to avoid long wait times. It can cover services not fully covered by the public system, such as:

● Dental and optical services

● More comprehensive private hospital care

● Complementary and alternative medicine (such as acupuncture and chiropractic care)

In short, private healthcare can give you more control and peace of mind when it comes to managing your health.

Which should you choose?

Historically it would’ve been a toss up of many factors including budget, your specific health condition, how urgent your treatment is, and more. However now there’s an added complication…the public health system is struggling to keep up with the growing demand.

A combination of funding issues, workforce shortages, rising treatment costs (also known as medical inflation), and increasing patient numbers means wait times are blowing out. Emergency departments are under strain, specialist appointments are delayed, and in some cases, clinics are even being forced to close.

That’s left many Kiwis wondering how they’ll access timely, reliable healthcare when they need it.

How health insurance can bridge the gap

Noting the strain that the public health system is facing, more and more Kiwis are opting to access the care they need via private health insurance.

Health insurance, also known as medical insurance, helps cover the cost of private treatment. You pay a regular premium (typically fortnightly or monthly) to your insurer who helps you pay for your treatment costs. It’s a way to avoid public waitlists and get more options, removing barriers to staying happy and healthy.

At nib, we strive to be your partner in health and wellbeing. We want to make your cover easy to use and empower you with the right tools to put your health into your hands. We offer a range of plans to suit different needs and budgets – from Everyday Health, which helps cover your day-to-day healthcare costs, to our Hospital plan, designed to cover bigger treatments like surgery or cancer care. You can also add extras like non-PHARMAC cover for access to medications not funded by the public system.

While tossing up the pro’s and con’s of public and private healthcare, remember how insurance can give you the peace of mind that when life throws a curveball, you’ll be ready.

Get in touch about our customisable, comprehensive health insurance plans today or click here for more info.