Media Release
6 March 2008
HBA below seven year average
HBA today confirmed its commitment to keeping health insurance affordable for more Australians, announcing its seventh consecutive year of below industry average premium rises.
In 2008 HBA's average premium increase will be 4.58% - below the national industry average of 4.99%.
Over the past seven years HBA's premiums have increased by an average of 4.95% compared to the industry's seven year average of 6.43%.
HBA's Managing Director Richard Bowden said HBA is leading the industry in supporting customers with high levels of cover while maintaining downward pressure on premium increases.
"As the second largest non-government health insurer in Australia, HBA's track record in keeping average premium rises below the industry average each year is unmatched."
"For HBA's customers the average premium increase will be lower than $1.10 a week for singles or $2.50 a week for families with hospital cover," Mr Bowden said.
In 2007 HBA supported its customers with more than $1 billion in hospital and general health care treatments, representing a 9% increase in benefits paid compared to the previous year. This included payments for more than 305,000 hospital admissions by HBA customers last year.
HBA's top ten claims alone totalled more than $1.2 million in 2007. The highest claim for a family was more than $357,000 for the birth and hospital care of triplets.
Mr Bowden emphasised that as long as health care costs continued to rise at double the rate of inflation the pressure on health funds to increase premiums would remain.
"The Health Services Index showed costs for hospital and medical services rose by 4.8% in 2007, while HBA's average premium increase is below that level, at 4.58%."
"Our customers can also be assured that we have consistently kept our operating costs below the industry average for the past seven years," Mr Bowden said. "Less than eight and a half cents in every customer dollar is used to manage the operations of HBA."
"HBA's members have not faced the significant fluctuations in premiums rises experienced by other funds, giving our customers the continuity they need in managing their budgets each year."
Keeping health insurance affordable while providing Australians with the protection they need is a balancing act that HBA continues to achieve as a health fund focussed on supporting the needs of its customers.
HBA's new premiums take effect on 1 April 2008 and letters informing members of their individual premium change will arrive in the mail during March 2008.
HBA's average weekly increase (after 30% Government rebate)
| National | VIC | QLD | SA | NSW/ACT | TAS | WA | NT | |
| Singles | $1.10 | $1.12 | $1.02 | $1.10 | $0.76 | $0.94 | $0.80 | $0.74 |
Comparison of HBA's average premium increase with industry benchmarks:
| HBA's average premium increase in 2008, 4.58% | % increase | Is HBA below? |
| Health Services Index (12 months to Dec 2007) rise in hospital and medical services1 | 4.8% | Yes |
| National industry average premium rise in 2008 | 4.99% | Yes |
Background information
HBA is Australia's second largest non-government health fund, covering more than a million Australians, with a national market share of 10%. HBA is the second largest private health fund in Victoria with 22.3% market share. The fund operates as Mutual Community in the Northern Territory and South Australia - where it is market leader with 43.25% market share.
For media enquiries please contact:
Julian Murphy
HBA Corporate Communications - Mob: 0434 072 024
Fast facts: A snapshot of HBA
- Close to 70% of all HBA members will receive an increase of less than $2.50 a week in 2008, with the 30% Government rebate.
- During the past seven years HBA's premiums have increased by an average of 4.95% compared to an industry average of 6.43%.
- Based on membership size, HBA is the largest health fund in Australia to have kept its average premium increases consistently below the industry average since 2002.
- In 2007 payments for hospital and general health care treatments on behalf of our members increased to more than $1 billion or 9% compared to the previous year.
- HBA's list of top 10 claims for 2007 totalled alone more than $1.2 million, with most members now on the road to recovery. The highest claim for a family was more than $357,000 for the birth and care of triplets in 2007.
- Since 2002, the benefits HBA paid on behalf of our customers for hospital and general health care treatments increased by a yearly average of 7.5%.
