MBF premium increase less than the industry average

Release date: 2 March 2009

MBF today announced its private health insurance premiums would rise by an average of 5.98%, or less than $1.35 a week, for a single membership.

Importantly, MBF's increase is lower than the national industry average of 6.02%, which was announced by the Federal Health Minister today.

The company's managing director, Richard Bowden, said this highlighted MBF's customer focus and price competitiveness.

"MBF has again demonstrated our commitment to ensure health insurance is affordable for more Australians, while delivering access to high quality healthcare," he said.

"In a perfect world, we would be able to shield customers from any price rise. However, the reality is that both the benefits we pay to members and the cost of providing healthcare are increasing considerably.

"As such, our ongoing ability to pay for members' medical treatments must be underpinned by a sustainable business."

Bowden also highlighted the fact that MBF's premiums had risen at a significantly lower rate than the increase in benefits paid on members' behalf.

In the 12 months to June 2008, MBF paid more than $1.7 billion - or over $4.6 million a day - in benefits to members. This surge in claims represented an increase of almost 10% - or $153.8 million - on the previous financial year.

MBF's 10 most expensive claims in 2008 totalled almost $1.8 million dollars, while its highest claim was made by a member who underwent open heart surgery - at a cost of $270,000.

"The sheer size of the benefits MBF is paying on behalf of members is testament to the fact that more and more Australians require expensive medical treatments," Bowden said.

Similarly, the Health Services Index showed costs for hospital and medical services rose by 6.1% in 2008. Yet despite these ever-growing costs, 86% of all medical services provided to MBF members in hospital were gap free in 2008.

"Irrespective of the fact that improved medical technologies and treatments are escalating the costs of healthcare, we're determined to keep downward pressure on members' costs," Bowden said.

"And while this has always been the case, it's particularly important now given the impact of the global economic conditions on our members' hip pockets."

The average dollar increase for MBF cover is less than $1.35 for singles and $3.15 for families per week - with the Federal Government rebate.

"All MBF customers can have confidence that we will continue to support their health, and that of their families, via our cost-effective and comprehensive range of products and services," Bowden said.

MBF customers will be notified in writing of the changes to their insurance premiums. The changes are effective from Wednesday, 1 April.

MBF's average weekly increase (with the Federal Government rebate):

MBF rate change in comparison to the industry average (headline rate only shown)

Media contact:

Meagan Starritt, Corporate Affairs Consultant, 0421 057 587

Matt Allison, Media & Corporate Communications Manager, 0407 440 212

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