Media Release
Friday 23 February 2007
HBA below national premium rise for six years
HBA announced today that for the sixth consecutive year its average premium increase would be below the national industry average.
From 1 April 2007 HBA will increase premiums by an average of 4.5% - equivalent to less than 95 cents per week.
Also, HBA will pass on the full savings from recent regulatory changes to single parent families – reducing their premiums by up to 25% on a wide variety of hospital covers.
HBA is Australia’s third largest health fund and has maintained premium increases lower than the industry average since 2002. Over the six years to April 2007 HBA’s average premium increase has been 5% compared to an industry average of 6.7%, representing a 25% reduction compared to the industry average.
HBA’s Managing Director Richard Bowden said HBA is leading the industry in maintaining low premiums and greater benefits for members over the long term.
“This is HBA’s lowest premium increase since 2002 and the second year in a row our premium rise has been reduced.”
“HBA’s average premium increase will be as low as $1 a week for singles or $2 a week for families with hospital cover,” Mr Bowden said.
“Less than eight and a half cents in every premium dollar is used to manage the operations of HBA,” Mr Bowden said. “As an efficient health fund we have consistently kept our operating costs below the industry average for most of the past decade.”
Last financial year HBA paid more than $916 million in benefits for members nationally, representing an increase of 8.5% compared to the previous financial year. During the same period HBA paid for more than 298,000 hospital admissions for our members.
In 2006 the Private Health Insurance Ombudsman released a report showing HBA’s Members First hospital network and Ezyclaim system lead the industry in providing members with no out of pocket costs for hospital admissions.
More than 96% of hospital and 89% of medical specialist claims are fully covered for HBA members with no out of pocket costs.
“HBA pioneered systems for eliminating or reducing out of pocket costs in Australia. We did so because we have an ongoing commitment to members that their health cover will be there when they need it most,” Mr Bowden said.
With growing community attention on dental health issues, in 2006 HBA launched Australia’s most comprehensive dental cover. With HBA, children under 25 now have no out of pocket costs for more than 250 dental procedures at Members First dentists. Over 133,000 Australian children are now benefiting from HBA’s extended dental coverage.
HBA’s new premiums take effect on 1 April 2007 and letters informing members of their individual premium change will arrive in the mail from Monday 5 March 2007.
HBA’s average weekly increase (with 30% Government Rebate)
| National | VIC | QLD | SA | NSW / ACT | TAS | WA | NT | |
| Singles | $1.03 | $1.12 | $0.77 | $0.97 | $0.67 | $0.83 | $0.67 | $0.64 |
Background information
HBA is Australia’s third largest health fund, covering more than a million Australians, with a national market share of 10.2%. HBA is the second largest private health fund in Victoria with 22.7% market share. The fund operates as Mutual Community in the Northern Territory and South Australia – where it is market leader with 43.5% market share.
| For media enquires please contact: |
| Julian Murphy HBA Corporate Communications Mobile: +61 434 072 024 |
Fast facts: A Snapshot of HBA
- Close to 65% of all HBA single and family members will receive an increase of $2 or less a week in 2007, with the 30% Government rebate.
- Over the past six years HBA’s premiums have increased by an average of 5% compared to an industry average of 6.7%.
- Of the seven largest health funds in Australia, HBA is the only fund to have kept annual premium increases lower than the industry average since 2002.
- For the second consecutive year HBA’s annual premium increase has fallen from 7.4% in 2005, 4.9% in 2006 to 4.5% in 2007. This is HBA’s lowest premium increase since 2002.
- HBA is pleased to lead the industry in providing Australia’s single parents with a reduced premium of up to 25% from 1 April 2007.
- In the 12 months to June 2006 the hospital and ancillary benefits paid on behalf of our members increased by 8.5% to $916 million.
- More than 89% of in hospital medical services for HBA members had no out of pocket costs.
- HBA’s list of top 10 claims for 2006 totalled more than $1.3 million, with most members now on the road to recovery. The highest claim for a single episode of treatment totalled $204,307.
