Medibank Private financial loss 2001/02
The Minister for Health and Ageing, Senator Kay Patterson, said she was dissatisfied with today's announcement of Medibank Private Limited's $175 million loss.However, she said the Board and the new Managing Director were taking firm measures to improve Medibank Private's financial performance.
27 Septmber 2002
Medibank Private financial loss 2001/02September 27, 2002 The Minister for Health and Ageing, Senator Kay Patterson, said she was dissatisfied with today's announcement of Medibank Private Limited's $175 million loss.
However, she said the Board and the new Managing Director were taking firm measures to improve Medibank Private's financial performance.
"I am - and I am sure the members - are not happy with this result," Senator Patterson said.
"But I am informed that the Board has taken action to turnaround this situation."
Senator Patterson assured members that Medibank Private more than met the strict prudential requirements set by the independent industry regulator, the Private Health Insurance Administration Council.
The most important issue is that Medibank Private continued to meet the needs of its members.
Senator Patterson said: "If any member does not believe they are getting value for money from their membership, they are free to look around at other funds. Under the Government's rules, members are free to leave without penalty."
Senator Patterson noted that Medibank Private had announced today that it would no longer offer a 4-6 per cent discount on its products.
She said that such a discount was not sustainable and not in the long-term interests of the fund or its members.
Senator Patterson said the financial result announced by Medibank Private would have no bearing on any future application by Medibank for a premium increase.
"Any application for a premium increase will not be rubber stamped. Medibank Private and all funds will have to prove any such application is in the public interest," she said.
"Australians know that private health insurance will always be 30 per cent cheaper under the Coalition than under Labor."
Media Contact: Randal Markey 0417 694 520