RNZ Podcast Tackles Health Insurance Questions with Expert Insights

RNZ has initiated a new podcast titled ‘No Stupid Questions’, hosted by financial journalist Susan Edmunds. This platform invites listeners to submit their inquiries regarding money and the economy, providing a unique opportunity for public engagement. Queries can be sent in written form or via voice memo to [email protected]. Additionally, listeners can subscribe to the accompanying newsletter, ‘Money with Susan Edmunds’.

In the inaugural episode, Edmunds addressed critical questions such as health insurance assessments and the rising costs of healthcare. She emphasized the importance of reviewing insurance policies annually, particularly during significant life events like marriage or the birth of a child. According to consumer insurance expert Rebecca Styles, the increasing age of policyholders correlates with elevated health risks, leading to higher premiums. Styles advised that individuals should consider structuring their health insurance to protect against worst-case scenarios, rather than attempting to cover every possible medical need.

As health insurance costs escalate, many people are opting out, which places additional strain on public healthcare systems. Styles noted that this trend also impacts insurance providers, potentially leading to increased premiums for those who remain insured. Tim Fairbrother, a wealth advisor, added that life changes—such as children leaving home or purchasing property—are also significant triggers for reviewing insurance coverage.

For health insurance specifically, Fairbrother recommended maintaining a comprehensive base plan that includes coverage for non-Pharmac drugs. These medications, while not government-funded, can incur substantial costs—sometimes up to $20,000 per month for six months. He stressed that including such coverage from the outset can prevent financial strain later on.

In addition to health insurance inquiries, the podcast also tackled tax-related questions. One listener asked about the eligibility to deduct mortgage interest and depreciation when sharing a home with boarders. This depends on the classification of the occupants. The Inland Revenue defines boarders as those receiving additional services, such as meals. Currently, an amount of $237 per week can be earned before tax obligations arise. If the occupants are merely flatmates, any income received must be declared, and a proportion of relevant expenses can be claimed, including mortgage interest and utility costs.

Another topic discussed was the impact of the Official Cash Rate on credit card interest rates. Despite fluctuations in the cash rate, credit card interest rates remain high, with current rates ranging from 9.95 percent to over 20 percent. This discrepancy may be attributed to consumer behavior, as many individuals plan to pay off their balances in full each month, reducing competitive pressure on interest rates. Additionally, because credit cards represent unsecured debt, they pose higher risks for financial institutions.

Listeners are encouraged to engage with the podcast and newsletter for ongoing discussions surrounding personal finance. The ‘Money with Susan Edmunds’ newsletter aims to provide insights into how economic factors influence everyday financial decisions, empowering individuals to make informed choices.