- Medibank Private
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Medibank 
Type Government Business Enterprise Industry Private Health Insurance & Disease management Founded 1976 as arm of the Health Insurance Commission Headquarters Melbourne, Australia Key people George Savvides (Managing Director) Products private health insurance, travel insurance, life insurance, pet insurance, travel medicine, workplace health promotion, workplace health management, Health call centres Revenue A$3.9 billion (2009)[1] Operating income $2143.4 million (2009)[1] Net income $93.8 million (2009)[1] Employees 3,200 Subsidiaries ahm (Australian Health Management) Website www.medibank.com.au www.medibankhealth.com.au www.ahm.com.au
www.traveldoctor.com.auMedibank 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.
Contents
Services
Medibank acquired the Wollongong based insurer ahm (Australian Health Management) in January 2009 and merged with the HSA Group in April 2009.[2] 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.[3]
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.[4] 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.[5]
'Not for profit' to 'for profit' Health Fund
Medibank was run as a not for profit organisation and currently operates as a Government Business Enterprise.[6] 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.[2][7] (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 government announced its intention to privatise Medibank Private if re-elected in the 2007 election.[8][9] 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".
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.[10] 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.[11]
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.[12]
Sponsorship and community
Sponsorship
Medibank Private's sponsorship[13] policy is to support events and programs that encourage people to be healthy and active.[14] It is the naming-rights sponsor of the annual Medibank International Sydney tennis event, and Junior Tennis in New South Wales.[15]
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.[16][17] The Medibank subsidiary ahm is a supporter of the 2009/10 NBL Grand Finalists, the ahm Wollongong Hawks.[18]
Until 2008, Medibank Private was the principal sponsor of the rugby league team Melbourne Storm.
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 Wiggles to launch "Wiggle Into Health"[19] 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.[20] 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[21]
- JDRF - Juvenile Diabetes Research Foundation Australia[22]
- The Salvation Army in Australia[23]
- Ronald McDonald House Charities[24]
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.[25][26]
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 Medicare. 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.[27]
References
- ^ a b c Medibank
- ^ a b Lindsay Tanner Press Release
- ^ Medibank Health Solutions "about us"
- ^ Metherell, Mark (25 March 2010). "Medibank slashes benefits". The Age. http://www.theage.com.au/national/medibank-slashes-benefits-20100324-qwr6.html. Retrieved 30 March 2010.
- ^ Medibank Press Release - Medibank simplifying hospital products, 25 March 2010
- ^ Governance framework and principles for operating government owned business entreprises
- ^ PHIAC Press Release: PHIAC approval for conversion to a 'for profit' insurer
- ^ Dept. of Parliamentary Services 2006 research brief into the proposed sale of Medibank Private
- ^ Medibank Private: Corporate Information
- ^ PHIAC
- ^ Department of Health and Ageing
- ^ PHIAC
- ^ Medibank
- ^ Medibank Sponsorship Policy
- ^ Tennis NSW
- ^ Austadiums
- ^ West Coast Eagles
- ^ NBL
- ^ Wiggle into Health
- ^ Medibank Community
- ^ White Lion
- ^ JDRF
- ^ Salvation Army Australia
- ^ Ronald McDonald House Charities.
- ^ Stand Up Australia
- ^ The Cost of Physical Inactivity
- ^ Medibank Private: Special Purpose Fund
External links
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
Research papers and Safer Healthcare Advice
Categories:- Commonwealth Government-owned companies of Australia
- Medical and health organisations based in Australia
- Companies established in 1976
- Organizations established in 1976
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