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PHIAC approves conversion of Medibank private to 'for-profit'

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Private Health Insurance Administration Council 2 July 2009

PHIAC Approves Conversion of Medibank Private to ‘For-Profit’

The Board of Private Health Insurance Administration Council (the Council) has approved the Application by Medibank Private Limited (MPL) to become a ‘for-profit’ health insurer.

“Following consideration of a significant amount of information, the conclusion for the Council was clear - the conversion process did not constitute a demutualisation. Accordingly, the Application by MPL to change its present status has been approved” said PHIAC Commissioner, JT Dominguez.

Mr Dominguez noted that MPL would become ‘for-profit’ with effect from 1 October 2009.

In order to allow MPL policyholders to register their opinion on the Application, the Council lodged public notices in major daily newspapers around Australia.

Mr Dominguez thanked those that provided input and assistance to the Council in its consideration of the Application, in particular members of the public who responded to the Council’s advertisement seeking submissions. The contribution of Senior Counsel, the Hon David Jackson QC and his Junior, Ms Jacqueline Gleeson was much appreciated.

MPL’s health insurance operations provide cover for more than 3.4 million Australians - approximately 30% of health-insured Australians. MPL’s Application indicated that the conversion would not change policyholders’ current premiums and entitlements.

MPL will continue to be required to meet prudential standards set for the industry which provide protection for policyholders.

About the Private Health Insurance Administration Council

The Private Health Insurance Administration Council is an independent Statutory Authority that regulates the private health insurance industry in accordance with policy set down by the Australian Government Department of Health and Ageing.

In addition, PHIAC: · collects and disseminates financial and statistical data regarding health funds, and · collects and disseminates information about private health insurance to enable consumers to make informed choices.

Further Enquiries Paul Groenewegen (02) 6215 7900