Greypower says elder people would be hit hard when the country's largest health insurer puts up its actual premiums.

Southern Cross has announced base rate premiums would be increase by an average of 6.5%.
It says some elder citizen' would have to pay an extra 20# or about $10 a week.

The rise is due to an increase in the number of claims and also the costs of procedures like knee replacements and the cataract operations going up.

Graham Stairmand of Grey Power says private health insurance would now become too luxurious for some senior citizens, and he expects a number to cancel their policies.