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HCF Health Insurance

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Returning more value to members

Monday, 2 March 2009

As one of Australia’s largest not-for-profit health funds, HCF works hard to give members the best possible value for their health fund contributions.

HCF returns 90 cents in hospital and extra benefits for every dollar it receives from members. The average return from other funds is 85 cents.

This year, HCF is particularly conscious that many families are facing challenging economic times and has been determined to keep contribution increases to a minimum, while responsibly covering the ever-increasing costs of advanced medical care. We know our members want to ensure they have access to high quality health care at the most affordable price possible.

HCF continues its efforts to reduce medical expenses for members. HCF’s medical gap cover in NSW is the highest of any major health fund, with 87% of all in-hospital medical services delivered at no-gap to members. Assisting with this is the negotiated charge agreements HCF has with more than 20,000 doctors. These initiatives help members save money.

In 2007/2008 HCF paid $973 million in health benefits for member’s health care costs, $107 million more than the previous year. This financial year HCF expects total health benefits to increase by another $ 91 million to $1,064 million. This includes:

• Benefits for members’ hospital care to increase by another $66 million to cover the increased costs associated with expanding medical gap coverage, prostheses, public and private hospital charges and improved medical technologies;
• HCF is helping to keep members’ costs low as, unlike most other funds, it continues to absorb members’ excess for both day hospital admissions and accident related surgery;
• Family budgets also benefit from HCF’s decision to not charge an excess for any dependent children if admitted to hospital;
• Ancillary (extras) benefits are forecast to increase by another $25 million for dental, optical, physiotherapy and chiropractic services. HCF has also introduced new benefits to its Super Multicover, Multicover, and General Extra’s Plus range. This will help members cover the costs of everyday health improvements such as Alexander technique and more.

This year, to cover rising health care costs and benefit improvements an average 4.71% increase is required. The average increase across the industry is 6.02%.

HCF’s new rates become effective April 1, 2009. Once again HCF is expecting to return 90% of contributions to members for payment of their health care costs this financial year.

HCF’s popular Hospital Advanced Savings will increase by $1.70 per week in NSW/ACT for single membership to $10.70, and HCF’s highest benefit hospital cover, Top Plus, is increasing $0.65 per week to $18.20 (both examples are single rate with $450 excess including 30% Federal government rebate.

HCF’s most popular packages like Top Plus Hospital combined with Multicover extras (with an annual extras benefit total of over $7000) will increase by 65 cents per week for single membership and a family membership by $1.35, with $450 excess including the Federal government 30% rebate.

HCF’s starting package, Hospital Advanced Savings ($450 excess) and General Extras Plus (with annual extras benefit total of over $2000) will increase by $1.70 per week to $16.15 per week for singles, including the Federal Government 30% rebate. The family rate will increase $3.35 per week to $32.40 per week.

Unlike most other funds, HCF continues to absorb costs for important non-elective surgery such as coronary and neonatal care. Heart problems can occur at any time and HCF wants to ensure its members have swift access to the best possible care, rather than being placed on a waiting list.

HCF will add even more value for its hospital members by mid-year by offering access to an individualised, health maintenance and management service. This innovative new program will cover both assistance with care and everyday wellness, delivered through a partnership with Heathways Australia that is a proven international health services organisation.

HCF members will have access to a comprehensive suite of Internet-based personal health resources, including customised information, risk assessments, health coaching and personal health records at their fingertips. This unique service will be delivered at no charge or additional cost to members. HCF is investing $100 million over the next five years in this program.

Chief Executive Officer of HCF, Terry Smith, said the program was the most comprehensive of its type in Australia. “Our healthy members will gain access to sophisticated information and tools to improve their quality of life and reduce the risk of future health problems. Members whose health is at risk will be better able to identify and manage these risks, while those with chronic conditions will receive additional support," he said.

For further information please contact: Toni Rankin at KJA (02) 9955 5040 or 0419 255 022

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