According to recently released data from the Australian Prudential Regulation Authority (APRA), the Members Health Fund Alliance of not-for-profit, member owned and community based health insurers are averaging much faster policyholder growth than the big for-profits and are returning much more of the premium dollar back to policy holders in benefits.
Members Health CEO, Matthew Koce, described the recently released APRA data contained in the Operations of Private Health Insurers Annual Report 2016-17, as yet another endorsement of the outstanding contribution being made by the not-for-profit, member owned and community based health fund sector.
The APRA data clearly shows that Members Health funds continue to be the leading lights of the health fund industry when it comes to growth, customer satisfaction and value,” said Mr Koce.
“As a group, the alliance of Members Health funds are growing around 4 times faster than the rest of the industry. This is not surprising, given last year the Members Health funds’ returned on average more than 90 cents in every premium dollar back to policy holders as benefits. A very impressive figure, especially when considering that the rest of the industry only returned around 85 cents in the premium dollar back as benefits”.
“The not-for-profit, member owned and community based health funds don’t serve shareholders. They exist primarily for the benefit of their members. They put member’s health before profit and this is something that is being recognised by consumers, who are abandoning the large insurers like Medibank in increasing numbers.”
“The member centric ethos of Members Health funds’ has seen very high satisfaction levels over many years. Independent research conducted by Discovery Research backs up the APRA data. The research shows average customer satisfaction levels with participating Members Health funds’ of around 97%.”
“Consumer satisfaction with Members Health funds’ is further reflected in retention rates. According to APRA, retention rates among the alliance Members Health funds was nearly 90% over the last 5 years. For the remainder of the health insurance industry it was less than 80%”.
It is also reflected in statistics from the Commonwealth Ombudsman which shows Members Health funds’ experience on average far fewer complaints than the rest of the industry in both raw numbers and as a proportion of their market share.”
“All the official data points to the very strong performance of the not-for-profit, member owned and community based health funds. The Members Health funds’ operate under a very different business model to the big shareholder centric for-profits. Consumers are taking notice of that and are voting with their feet by joining the Member Health funds in very large numbers.”
When looking for reliability, integrity and peace of mind around fast and effective health care, the alliance of Members Health funds’ can be trusted to put their policyholders’ health first foremost.”
“The alliance of Members Health funds’ puts members’ health before profit.”
Members Health is the peak industry body for 24 health insurers which are not-for-profit, member-owned and community based. In all, the Members Health funds provide private health insurance to over 1.7 million Australians.
Director of Policy, Industry and Government Relations
(03) 8831 3372