| Publication: | The Australian |
|---|---|
| Date: | 2 December 2008 |
| Section: | Business |
MORE than 95 per cent of Australian Health Management members have voted in favour of demutualising the group.
This clears one of the hurdles for policyholders so they can accept Medibank Private's $367 million takeover offer.
The 160,000 AHM members are scheduled to vote at a December 8 on whether to accept the scheme of arrangement to merge with the biggest health fund, the government-owned Medibank Private.
If the vote favours Medibank's offer, some of AHM's longest serving members could receive a cash payment of up to $8800, depending on their type of cover and years of membership of the Wollongong-based fund.
The cash payment is expected to be paid by January next year. Members who joined AHM before the cut-off date of July 13, and remain members until December 5, would be entitled to a minimum payment of $26.
Medibank had previously said the takeover of AHM would benefit its 3 million policy holders as they would have access to AHM's health management programs, which concentrate on preventive healthcare, especially in the management of chronic diseases such as diabetes and heart conditions.
Preventive care has been promoted as a way to reduce medical costs. Private health insurance is gradually moving away from hospital care to alternative community-based schemes to provide better support to policyholders managing chronic illnesses.
In another consolidation in the private health sector, Manchester Unity members will vote on whether to accept the $256 million takeover offer from HCF at a meeting on December 15.
