Fed: Medibank not to raise 2001 fees on back of record surplus

AAP General News (Australia)
12-15-2000
Fed: Medibank not to raise 2001 fees on back of record surplus

CANBERRA, Dec 15 AAP - Australia's largest private health insurance fund Medibank Private
has joined the growing list of funds not planning to increase premiums next year.

Medibank said record results for 1999/2000 meant it did not have to put up its fees.

Health funds HCF and MBF already have announced they would not be increasing premiums in 2001.

Medibank managing director Mark Burrowes said 1999/00 was a great year for the fund
and the industry.

During the year the fund grew its market share, increased its solvency position and
wrote a record operating surplus.

Medibank now provides coverage to nearly three million Australians or 30.7 per cent
of the insurance market.

"Medibank Private's operating surplus for the year was almost $100 million," Mr Burrowes said.

"This is due to strong operating results achieved through the Lifetime Health Cover
membership surge, but over 87 per cent of the surplus can be attributed to strong investment
returns.

"Our surplus per member is lower than the industry average, affirming our strong, trusted,
not-for-profit position in the industry."

The fund said its introduction of GapCover, a product to cover out-of-pocket expenses
incurred by patients, had been successful.

"Over 40 per cent of all medical services are now no or known gap and by the end of
this calender year, we're expecting this to reach 60 per cent," Mr Burrowes said.

He said the the surplus would also allow the fund to upgrade its information technology
capacity to move to on-line access for members within the next three years.

AAP eg/cjh/bwl

KEYWORD: MEDIBANK

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