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Operating environment

An overview of Medibank's activities in 2017, performance against our milestones, a summary of Medibank's reform agenda, and our approach to Environmental, Social and Governance (ESG) factors.


In order to deliver our Better Health for Better Lives purpose, we are a strong advocate for a sustainable private health system that delivers value, transparency and affordability. This means putting our customers first and advocating for reform on their behalf.

Our Environmental, Social and Governance (ESG) commitments also play a significant role in our operating environment. Our approach is based on our commitment to the health and wellbeing of our customers, employees, community and environment.



In addition, Medibank provided a range of health services in Australia including mental health support, preventative and better integrated primary care, after-hours health support, and healthcare for the 60,000 permanent and 20,000 reservist uniformed Australian Defence Force personnel.

Milestone scorecard

Customer Customer
Financial Financial



focus areas

Further reductions to prostheses prices*

Tackle low value care

Incentives for young people to join private health insurance

Greater informed consent when using private health insurance in public hospitals

Enhance payment integrity for MBS claims

Maintain the rebate and regulations that encourage private health insurance

Greater transparency of costs and quality outcomes in the health system

* Ongoing prostheses reform will help to put downward pressure on private health insurance premiums.

The Australian Government announced the first stage of reform to the prostheses list in October 2016. Coming into effect in February 2017, we estimated the price reductions would realise $24 million in savings and fully passed these on to our customers in advance.

Our 2017 premium increase was 35 basis points (0.35%) lower than it otherwise would have been because of this.

We look forward to further prostheses reform to deliver additional savings, and are committed to returning every dollar saved to our customers.

We passed on 100% of the expected savings from the first stage of prostheses reform to our customers.

Broader regulatory landscape in 2017

  • Medicare Benefits Schedule Review
  • Ministerial Committee Review of Private Health Insurance
  • Prosthesis List Advisory Committee
  • Senate Review of Private Health Insurance
  • Senate Inquiry into Prostheses Prices

Environmental, Social & Governance factors

Summary of ESG issues and themes examined as part of Medibank’s materiality assessment

Governance & transparency

  • Integrity & independence
  • Executive leadership
  • Privacy & data security
  • Disclosure & reporting

Products & services

  • Affordability & access
  • Transparency & support
  • Health trends
  • Digital transformation

Environmental & social

  • Climate change risks
  • Reconciliation
  • Social practices
  • Supplier diversity


  • Engagement
  • Health, safety & wellbeing
  • Capability
  • Diversity & equality

Financial position

  • Growth
  • Profitability
  • Shareholder value
  • Responsible finance


  • Customer service & relations
  • Industry partners & relations
  • Public policy
  • Advocacy & regulation
Our ESG approach

Medibank is committed to the health and wellbeing of our:

  • CUSTOMERS and providing products, services and experiences to support them.
  • EMPLOYEES and driving a values-driven, inclusive and Customers First culture.
  • COMMUNITY and supporting Australians through community partnerships, health promotion and advocacy.
  • ENVIRONMENT and working through programs and partnerships to support environmental sustainability.

We are guided by the Triple Aim of Healthcare – better healthcare experiences, better outcomes, and better efficiency and affordability.

*Based on the Institute of Healthcare Improvement’s Triple Aim of Healthcare