Medibank Private
Encyclopedia
Medibank is an Australian government-owned private health insurer, established under the Fraser
government in 1976 through the Health Insurance Commission (now known as Medicare Australia
). It is Australia's largest health insurance provider with 3.6 million members under two brands, and the only health insurer present in every Australian state and territory. Its Managing Director since 2002 has been George Savvides
.
In July 2010 Medibank acquired fellow health services provider, McKesson Asia-Pacific, absorbing it into Medibank Health Solutions. The move extended Medibank's health management capability and essentially completes Medibank’s transformation into a genuine health company that offers health insurance and health solutions.
The telephone and online health management programs services provided by McKesson Asia-Pacific, including ‘healthdirect Australia’, ‘NURSE-ON-CALL’ and ‘Healthline’ will be maintained by Medibank.
In March 2010 Medibank Private withdrew benefits for restricted services on its basic First Choice Savers hospital policy. As of June 2010, benefits for procedures such as heart operations and assisted reproductive services will be available only to customers on more comprehensive policies costing as much as 50% more. Medibank stated that the changes were intended to improve customer understanding of their products. They further stated the impact on customers will be small, due to the low rate of use of the restricted services.
and currently operates as a Government Business Enterprise. In May 2009 the Rudd Labor government
announced that Medibank would become a 'for profit' business and would therefore in future pay tax on its earnings. The process of converting the status of the business was completed on 1 October 2009, following approval from the regulator PHIAC. (The Private Health Insurance Administration Council (PHIAC) is an independent Statutory Authority that regulates the private health insurance industry. Private health insurance policy is set down by the Australian Government Department of Health and Ageing.)
announced its intention to privatise
Medibank Private if re-elected in the 2007 election. Australian Labor Party
policy was for Medibank to remain as a government business enterprise (GBE), reporting to the Minister for Finance.
Following the 2007 election, which Labor won, Medibank Managing Director George Savvides said he looked forward to working with the new Labor government
but for Medibank employees and members it would be "business as usual" as they will remain a GBE, "which is what we know, removing the ownership change agenda from our planning process".
The pricing and features of health insurance products is regulated by the Dept. of Health and Ageing.
To inform consumers, the Private Health Insurance Ombudsman operates a website to explain private health insurance and provide a standardised basis to compare health fund products.
Medibank supports the West Coast Eagles
AFL football team, the Medibank Private Active Tasmania Awards, and the naming rights to Medibank Private Stadium
(formerly Leederville Oval), home of WAFL
teams East Perth
and Subiaco
. The Medibank subsidiary ahm is a supporter of the 2009/10 NBL
Grand Finalists, the ahm Wollongong Hawks
.
Until 2008, Medibank Private was the principal sponsor of the rugby league team Melbourne Storm
.
to launch "Wiggle Into Health" with the aim of inspiring young families to adopt healthy behaviours that lead to a healthy life.
Medibank also supports the community through staff charity and volunteering activities. The company gives paid leave to staff for volunteering activities with the charities it supports and 'gift matches' staff donations to charitable organisations nominated by the staff member (up to A$500 per staff member per annum). The organisations Medibank supports through volunteering are:
Health and well-being promotion in the community is advocated by Medibank through the financial support for research, with a particular focus on the risks associated with inactivity.
. The grants do not cover members who are under-insured, or cosmetic procedure, or experimental treatments. The fund is open only to Medibank Private members.
Malcolm Fraser
John Malcolm Fraser AC, CH, GCL, PC is a former Australian Liberal Party politician who was the 22nd Prime Minister of Australia. He came to power in the 1975 election following the dismissal of the Whitlam Labor government, in which he played a key role...
government in 1976 through the Health Insurance Commission (now known as Medicare Australia
Medicare Australia
Medicare Australia is an agency of the Australian Government that administers health-related programs including Medicare, the Pharmaceutical Benefits Scheme , and others. It is a prescribed agency under the Financial Management and Accountability Act 1997 and a statutory agency within the...
). It is Australia's largest health insurance provider with 3.6 million members under two brands, and the only health insurer present in every Australian state and territory. Its Managing Director since 2002 has been George Savvides
George Savvides
George Savvides is an Australian businessman. Since 2002 he has been the Managing Director of Medibank Private Limited.-Education:George Savvides trained as an industrial engineer and has a Bachelor of Economics from the University of New South Wales...
.
Services
Medibank acquired the Wollongong based insurer ahm (Australian Health Management) in January 2009 and merged with the HSA Group in April 2009. Following these transactions, Medibank created the Health Solutions Division, which is focussed on delivering clinical services (such as injury treatment), preventative treatment (e.g. flu and travel vaccinations) and health coaching programs to help Australians manage health conditions (e.g. diabetes). Services are delivered under the Medibank Health Solutions and Travel Doctor brands.In July 2010 Medibank acquired fellow health services provider, McKesson Asia-Pacific, absorbing it into Medibank Health Solutions. The move extended Medibank's health management capability and essentially completes Medibank’s transformation into a genuine health company that offers health insurance and health solutions.
The telephone and online health management programs services provided by McKesson Asia-Pacific, including ‘healthdirect Australia’, ‘NURSE-ON-CALL’ and ‘Healthline’ will be maintained by Medibank.
In March 2010 Medibank Private withdrew benefits for restricted services on its basic First Choice Savers hospital policy. As of June 2010, benefits for procedures such as heart operations and assisted reproductive services will be available only to customers on more comprehensive policies costing as much as 50% more. Medibank stated that the changes were intended to improve customer understanding of their products. They further stated the impact on customers will be small, due to the low rate of use of the restricted services.
'Not for profit' to 'for profit' Health Fund
Medibank was run as a not for profit organisationNon-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
and currently operates as a Government Business Enterprise. In May 2009 the Rudd Labor government
Rudd Government
The Rudd Government refers to the federal Executive Government of Australia of the Australian Labor Party from 2007 to 2010, led by Kevin Rudd as Prime Minister. The Rudd Government commenced on 3 December 2007, when Rudd was sworn in along with his ministry...
announced that Medibank would become a 'for profit' business and would therefore in future pay tax on its earnings. The process of converting the status of the business was completed on 1 October 2009, following approval from the regulator PHIAC. (The Private Health Insurance Administration Council (PHIAC) is an independent Statutory Authority that regulates the private health insurance industry. Private health insurance policy is set down by the Australian Government Department of Health and Ageing.)
Privatisation proposal
In April 2006, the then Howard Liberal governmentHoward Government
The Howard Government refers to the federal Executive Government of Australia led by Prime Minister John Howard. It was made up of members of the Liberal–National Coalition, which won a majority of seats in the Australian House of Representatives at four successive elections. The Howard Government...
announced its intention to privatise
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
Medibank Private if re-elected in the 2007 election. Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
policy was for Medibank to remain as a government business enterprise (GBE), reporting to the Minister for Finance.
Following the 2007 election, which Labor won, Medibank Managing Director George Savvides said he looked forward to working with the new Labor government
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...
but for Medibank employees and members it would be "business as usual" as they will remain a GBE, "which is what we know, removing the ownership change agenda from our planning process".
Industry structure and main competitors
Private health insurance in Australia is heavily regulated to protect consumers. Prudential supervision is undertaken by PHIAC to ensure the funds remain solvent. PHIAC also publishes extensive statistics on the industry and annual financial statement for individual health funds to provide full transparency for stakeholders.The pricing and features of health insurance products is regulated by the Dept. of Health and Ageing.
To inform consumers, the Private Health Insurance Ombudsman operates a website to explain private health insurance and provide a standardised basis to compare health fund products.
Sponsorship
Medibank Private's sponsorship policy is to support events and programs that encourage people to be healthy and active. It is the naming-rights sponsor of the annual Medibank International Sydney tennis event, and Junior Tennis in New South Wales.Medibank supports the West Coast Eagles
West Coast Eagles
The West Coast Eagles are an Australian rules football club which plays in the Australian Football League. The club is based in Perth, Western Australia. The club was founded in 1986 and played its first games in the 1987 season. Its current home ground is Subiaco Oval...
AFL football team, the Medibank Private Active Tasmania Awards, and the naming rights to Medibank Private Stadium
Medibank Private Stadium
Leederville Oval, officially called Medibank Stadium, is an Australian rules football ground located in Leederville, Western Australia. The ground is currently used as a home ground by two clubs: the East Perth Football Club and the Subiaco Football Club, both competing in the West Australian...
(formerly Leederville Oval), home of WAFL
West Australian Football League
The West Australian Football League is an Australian rules football league based in Perth, Western Australia. The WAFL is the second-most popular in the state, behind the nation-wide Australian Football League...
teams East Perth
East Perth Football Club
The East Perth Football Club, nicknamed the Royals, is an Australian rules football club that is a member of the West Australian Football League...
and Subiaco
Subiaco Football Club
The Subiaco Football Club, nicknamed the Lions, is an Australian rules football club in the West Australian Football League . It was founded in 1896, and admitted to the WAFL in 1901, along with North Fremantle...
. The Medibank subsidiary ahm is a supporter of the 2009/10 NBL
National Basketball League (Australasia)
The National Basketball League, also known as the iiNet NBL Championship for sponsorship reasons, is the pre-eminent men's professional basketball league in Australasia....
Grand Finalists, the ahm Wollongong Hawks
Wollongong Hawks
The Wollongong Hawks are a team competing in Australia's National Basketball League , based in the New South Wales city of Wollongong. They won the NBL championship in 2001 and finished as runners-up in 2005 and 2010...
.
Until 2008, Medibank Private was the principal sponsor of the rugby league team Melbourne Storm
Melbourne Storm
The Melbourne Storm are an Australian professional rugby league club based in the city of Melbourne. They are the first fully professional rugby league team based in the Australian rules football-dominated state of Victoria....
.
Community
In 2009, under its new sponsorship policy, the company reduced its sponsorship of high profile sports teams in favour of improving the health of Australians and re-allocated sponsorship funds to create a new joint initiative. Medibank Private teamed up with The WigglesThe Wiggles
The Wiggles are a children's group formed in Sydney, Australia in 1991. Their original members were Anthony Field, Phillip Wilcher, Murray Cook, Greg Page, and Jeff Fatt. Wilcher left the group after their first album...
to launch "Wiggle Into Health" with the aim of inspiring young families to adopt healthy behaviours that lead to a healthy life.
Medibank also supports the community through staff charity and volunteering activities. The company gives paid leave to staff for volunteering activities with the charities it supports and 'gift matches' staff donations to charitable organisations nominated by the staff member (up to A$500 per staff member per annum). The organisations Medibank supports through volunteering are:
- White Lion - Courage to Grow - empowering disconnected young people
- JDRF - Juvenile Diabetes Research Foundation Australia
- The Salvation Army in Australia
- Ronald McDonald House Charities
Health and well-being promotion in the community is advocated by Medibank through the financial support for research, with a particular focus on the risks associated with inactivity.
Medibank Special Purpose Fund
Medibank operates a special purpose fund that gives grants for medical treatment that is not covered by traditional insurance policies for its members. Typically the grants are for rare, innovative clinical treatments that are not covered by private health insurance or MedicareMedicare (Australia)
Medicare is Australia's publicly funded universal health care system, operated by the government authority Medicare Australia. Medicare is intended to provide affordable treatment by doctors and in public hospitals for all resident citizens and permanent residents except for those on Norfolk Island...
. The grants do not cover members who are under-insured, or cosmetic procedure, or experimental treatments. The fund is open only to Medibank Private members.
Corporate Websites
- Medibank Private - "I feel better now" Australia's largest health insurer
- Medibank Health Solutions "Tailored Health Care for Work, Government & You"
- ahm
- Travel Doctor
Information websites
Charities supported
- White Lion - Courage to Grow - empowering disconnected young people White Lion
- JDRF - Juvenile Diabetes Research Foundation Australia JDRF
- The Salvation Army in Australia Salvation Army Australia
- Ronald McDonald House Charities Ronald McDonald House Charities