Maternity care debt in millions

By RUTH HILL - The Dominion Post
Last updated 00:07 31/08/2009

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Foreigners having babies in New Zealand hospitals are leaving behind unpaid bills totalling millions of dollars for their care.

Figures supplied to The Dominion Post under the Official Information Act show that in Counties Manukau alone, the health board writes off about $1 million a year in bad debts for maternity services but the Health Ministry admits it does not know how many babies are now born to non-resident women.

Chief executive Geraint Martin said about 250 mothers a year were ineligible for publicly funded maternity but fewer than one in five paid up.

"This amounts to approximately $1 million per year in outstanding bad debt for our DHB."

Before 2003, all maternity care in New Zealand was free but the rules were tightened after revelations foreign women were cashing in with "childbirth expeditions".

Since then, taxpayer-funded care has been limited to mothers who have New Zealand citizenship or residency; have appropriate working visas or refugee status; fall under the reciprocal agreement with Australia and Britain; or whose partners are eligible.

Even so, the number of babies born to non-resident women rose from 3248 to 3866 between 2005-06 and 2006-07.

The Health Ministry no longer collects data on babies born to non-eligible women, as maternity funding is devolved to health boards. Wellington Hospital started doing passport checks on expectant mothers in 2006.

Hospital deliveries cost from $5000 to more than $12,000 if a caesarean is required.

Auckland immigration lawyer Aaron Martin said many people on work visas were confused about their entitlements.

"They assume that if they have the money to pay for their care themselves, it should not be a problem ... But they don't realise that because of the shortage of midwives in New Zealand, the Government regards them as taking up resources and depriving New Zealand citizens."

He said the rules were clear, but that information should be more clearly communicated to immigrants.

In June, Jurga Skiauteris, 29, from Lithuania, was granted an extension to her visitor's visa so she could stay in New Zealand to give birth after doctors said it was too dangerous for her to travel.

Though she had health insurance, the Immigration Service had earlier rejected two appeals on the basis Mrs Skiauteris was "not of an acceptable standard of health" a decision criticised by Immigration Minister Jonathan Coleman.

Venture Southland settlement co-ordinator Sue Morrison-Bailey said the region had seen a huge influx of foreigners on one-year visas, mainly agricultural workers.

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"When I see them bringing in their partners, I apologise and say, 'I know you're devoted Roman Catholics but you really must use birth control because you can't afford to have a baby in New Zealand'. "When they hear it costs $4000 to $5000, they're shocked.

"I would like to see the Government make health insurance compulsory for all people on temporary work permits."

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