Medibank announces changes to premiums
The Federal Minister for Health today announced that private health insurance premiums will be increasing across the industry, effective 1 April 2015. Medibank received approval from the Minister to increase its premiums by an average of 6.59% across all Medibank and ahm health insurance products.
Private health insurance premiums for all private health insurers are regulated and changes are approved by the Australian Government Minister for Health annually.
Medibank’s Managing Director, Mr George Savvides, said that premium increases were reflective of increased claims and the rising cost of providing healthcare, and that providing members with quality and affordable healthcare remained a key strategic focus.
“Delivering better health to our members by providing quality and affordable health insurance is at the heart of what Medibank stands for.
“We understand that affordability is a key issue for our members and the industry as a whole, and are working hard in our business and with others in the industry to contain the cost of healthcare so private health insurance remains accessible for as many Australians as possible,” he said.
Medibank’s Chief Customer Officer, Mr Laz Cotsios, said that last financial year, Medibank and ahm paid out almost $4.9 billion in claims on behalf of our members and that the premium increase was necessary to ensure members had peace of mind.
“Now common procedures like childbirth and hip replacements have average costs of more than $8,500 and $27,900 respectively[i], but after private health insurance, our members typically only have to cover a very small portion of this,” he said.
“We know that affordability is obviously very important and we have made every effort to keep our premiums affordable, while continuing to offer competitive private health insurance products with attractive, sustainable benefits through both of our Medibank and ahm brands.”
Medibank’s private health insurance products have received Canstar awards for outstanding value for the last seven years. Medibank and ahm members have the option to lock in current premium rates by pre-paying their insurance for up to 12 months ahead of the premium rises (which will come into effect on 1 April 2015).
“We always encourage members to speak to us and to review their policies if they’re unsure about their current level of cover. Not only does it ensure members get the cover they need, but for many individuals and families it identifies a more appropriate policy that leads to lower premiums and savings for the household,” Mr Cotsios said.
"The cost of a policy relates to a variety of factors including the level of cover you require, the excess you are comfortable with and the services you wish to be included.”
For further information please contact:
Media Relations Manager, Medibank
Tel: 03 8622 6388 | Mob: 0467 723 004
General Manager, Investor Relations, Medibank
Tel: 03 8622 5834 | Mob: 0410 728 427
Medibank is a leading health company and Australia’s largest private health insurer, providing private health insurance to almost 3.9 million people through its ahm and Medibank brands and a range of integrated healthcare services for private health insurance policyholders, government, corporate and other retail customers.
From its core private health insurance retail business – supported by over 90 retail stores– to healthcare services, life, pet and travel insurance, health system advocacy and work in the community, everything Medibank does is aimed at delivering on the company’s purpose of “for better health”. As a part of this, Medibank commits 1 per cent of its pre-tax profit each year to support better health in the community.
Medibank has its head office in Melbourne and employs more than 3,000 people and operates throughout Australia, with a limited presence in New Zealand.
ahm Health Insurance is a business of Medibank Private Limited ABN 47 080 890 259. 'ahm by Medibank', 'ahm Health Insurance' and 'ahm' are references to Medibank Private Limited trading as ahm Health Insurance.
[i] Medibank Health Cost & Utilisation Report 2014 – average total costs include in-hospital, prosthesis and medical costs.
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