MBF confirms average 4.39% premium increase effective 1 April 2007 but freezes 'young cover' premiums
Release date: February 23th, 2007
PRIVATE health insurer MBF today confirmed that its premiums will increase by an average 4.39% effective from 1 April 2007 following completion of this year's industry wide rate review.
MBF's average increase is nearly 1.4% lower than last year and is below the industry average increase of 4.52%. This is the sixth year in succession that MBF's average increase has been close to or below the industry average.
In the past five industry rate reviews, MBF premiums increased by an average 5.77% (2006), 7.74% (2005), 5.79% (2004) 7.4% (2003) and 3.5% (2002) compared with industry averages of 5.68%, 7.96%, 7.58%, 7.4% and 6.9% respectively.
There is no increase this year in premiums for MBF entry-level products - Budget Hospital and Young Extras - favoured predominantly by young people.
MBF is also increasing ancillary health benefits for general and preventive dental services conducted by MBF MemberCare providers and for selected optical and physiotherapy services.
Also being prepared is a wider range of health and wellness programs to follow the introduction of the Federal Government's 'broader health cover' reforms for which legislation is currently before Parliament.
This year's moderate average premium increase across MBF's product range is in the face of significant increases in healthcare costs and resulting benefit payments.
In 2005-2006, MBF's health insurance division paid $105 million more in benefits to support members' healthcare needs. Also in 2005-2006:
- Hospital benefits totalled $1,097.8 million - an increase of $64.1 million or 6.2%.
- Benefits for in-hospital medical services totalled $180.3 million - an increase of $12.4 million or 7.4%.
- Ancillary benefits for services such as dental care, optical and physiotherapy totalled $476.9 million - an increase of $28.5 million or 6.4%.
MBF will be writing to all members to let them know the effect of the premium increase on their private health cover products.
