Extras health cover can be great way of ensuring you’re taking care of your mind and body plus saving money on what’s important for your lifestyle. But how does it actually work? [read]
Private health insurance is there to protect people when they most need it right? Unfortunately not every insurer has your best interests at heart.
Where Do Health Insurance Profits Really Go? We’ll Tell You.
Recent media attention has again focused on skyrocketing profits in the private health industry. It comes at a time when more and more consumers are questioning the value of their own policies and what they actually get in return.
The April 1st price rise also came as a shock to many, with a lot of publicity around these annual hikes in premiums. On top of the big profits, some health insurers are also under increased scrutiny for the way in which they structure policies and how it can leave customers unexpectedly out of pocket.
Why are the profits so big and what does it mean for customers?
It makes sense that people are becoming frustrated by these huge profits ending up in the pockets of overseas shareholders.
You would think that private health insurance is there to protect people when they most need it. While there are excellent policies available for those who shop around, many Australians possess ‘junk policies’ which aren’t providing adequate safety nets for hospital procedures when they really need them, including out-of-pocket expenses and an increasing number of conditions.
So if you’re with a health fund that doesn’t always act in your best interests, why would you stay with them?
How a fund is run plays a big part in how you’re treated. For-profit funds are run to turn your premiums into profits for investors or overseas owners. For example, Medibank/ahm, Bupa and nib are all for-profit funds.
Not-for-profit or mutual funds are run to support the health of all their members. You guessed it, all the Members Own health funds are not-for-profit or mutual funds.
Why do Members Own funds deliver more benefits to its members?
On the whole, not-for-profit/mutual health insurance providers focus their energy on member needs and ensuring their overall well being, while spending zero time looking after the financial interests of investors and overseas shareholders (because they don’t have any!).
We’re a little biased, but we think going with a not-for-profit comparison service is a really smart move because it provides extra peace of mind. Members Own Health Funds have already helped over 1 million Australians find better value health insurance.
On top of this, over the past five years our funds have returned a higher percentage of premiums to their members in benefits than the big 3 for-profit funds: Medibank/ahm, Bupa and nib.
Switching to a not-for-profit is easier than you think
The best way to ensure you’re getting the best combination of price and benefits is to use our online comparison service to do most of the work for you. You can mix and match hospital and extras and find the right type of cover for your needs.
Call us on 1300 34 34 36, and we’ll help you find the best health cover for you from our panel of not-for-profit and mutual health funds.