Health insurance premiums to rise

Health insurer Southern Cross is softening its members up for a hike in premiums.

The non-profit outfit has just released figures showing its costs are up by ten per cent.

Southern Cross says the increase in costs is down to rising numbers of claims and a higher cost of claims.

For example, the average cost of a knee operation has jumped to more than $14,000, while kidney surgery is up $1500 to more than $10,000.

There have also been big jumps in demand with general surgery and minor skin operations both up by a third in the past few years.

Southern Cross says higher premiums are one way to keep pace, but it is also limiting which providers patients can use, to keep a lid on costs.

- NEWSTALK ZB