SmartHealth HIF Newsletter March 2011

HIF keeps premium increases below the industry average. Again.

Australia’s first certified Carbon Neutral health fund. You’re probably wondering what it is The strong support for HIF has resulted Managing that HIF does that the big funds don’t in annual membership growth (13.6% Director’s seem to be able to do. Well for starters, to Dec 2010) reaching double-digit we focus on affordability, personalised multiples of the growth rates of the Update service and choice of health provider, big funds and the industry as a whole as well as having regard to the interests (3.2% to Dec 2010). This means Welcome to of HIF members who require medical that the administrative cost per policy our first edition treatment and want great benefits. is contained and therefore there is of SmartHealth much less pressure on us to increase We also operate with only the required for 2011. On 1 premiums. That’s good news for all number of administrative staff and of April 2011, the HIF members! course we are very vigilant in making 35 health funds sure HIF’s investment portfolio delivers HIF’s low average increase of 4.47% across strong levels of income that we can use placed it number one ranked lowest increase premiums to offset escalating medical treatment premium increase of all open, not-for- to account for the costs. profit health funds for 2011. escalating costs of hospital, medical, prosthesis and ancillary health services By doing better at providing value for The effect of HIF’s premium and treatment, including charges for money health cover(s), we have attracted increases on fund members dental, physiotherapy, ambulance and high levels of interest from members The changes to an individual policy pharmacy services. of other funds and consequently we varies depending on a number of have seen large numbers of people Funds also increase premiums to factors, including whether or not you transferring to us. This is on top of those cover additional overhead charges have a single or family policy, hospital new members who have taken up HIF and in some cases to cover a short- cover only, ancillary cover only or both, health cover for the first time. We have fall in income (or loss of income) from your excess level (hospital covers also noted that a significant number under-performing or failed investments. only) and what specific hospital and/or of people transferring to us have been This investment income is often used ancillary product(s) you have. Here is a prompted by existing HIF members. So to subsidise otherwise larger premium snap-shot of the 1 April 2011 changes: thank you and I hope you enjoyed your increases. member reward. Benefits and contributions at a glance For the year ended 31 December 2010, Selected funds – Average premium increase 1 April 2011 HIF benefit payments towards health services and treatments increased by 8%

20.8% compared to the previous 12 7% 6.41% months, yet, as we have done for the 6.19% 5.85% last four years, HIF’s average premium 6% 5.57% 5.68% 5.35% increase will be kept to below 5.0%. 5.14% 5% That’s five consecutive years of average 4.47% premium increases below the industry 4% average increase. 3% A closer look at how HIF 2% consistently keeps health cover affordable 1%

HIF’s average premium increase of 0% 4.47% (effective 1 April 2011) is a further HIF BUPA/MBF Medibank Industry GMHBA HBF NIB HCF (for profit) Private (for profit) improvement on last year’s 4.50%, (for profit) and is well below the industry average increase of 5.56% (5.78% last year) and below the average increases of all of the big insurance companies, including BUPA/MBF, Medibank Private, HBF, NIB and HCF which together account That’s five consecutive years of for around 80.0% of all private health insurance policies in Australia. average premium increases below the industry average increase.

MARCH 2011 | Issue 17 Thank you once again for your Weekly Weekly ongoing support. Weekly Premium ($) Premium ($) Increase ($) Policy Holders Type of cover after 30% after 30% after 30% rebate - before rebate - from At the end of December 2010, HIF rebate 1 April 2011 1 April 2011 represented the health and wellness interests of 61,167 persons under Singles 29,664 policies. – with top hospital cover $23.84 $24.96 $1.12 (no excess)

Singles – with budget hospital cover $8.47 $9.06 $0.59 ($200 excess)

Singles $11.90 $12.46 $0.57 – with top ancillary cover

Graeme Gibson, Singles $3.50 $3.71 $0.21 Managing Director – with budget ancillary cover Singles – with top hospital (no $35.73 $37.42 $1.69 excess) and ancillary cover

Singles – with budget hospital $11.97 $12.77 $0.80 ($200 excess) and ancillary cover

Five years of lower than average premium increases.

On April 1, when health funds across Australia increase their premiums, HIF will keep its average percentage increase to below the industry average. That makes five years in a row.

More proof that you made the smart choice for health cover by choosing HIF.

Call 1300 13 40 60 hif.com.au The smart choice for health cover.

1 Your health – how are you doing compared to the “average”?

With Joe Budrovich, HIF Operations Manager

Apart from that old adage about “death and taxes”, the other certainty in life is that as we and our families grow and age, our health needs will change.

The most recent health review of Australians reflects these changes and also identified some very concerning • The rate of hospitalisation for “working Our ancillary covers (known as HIF health trends. In summary: age” Australians increases significantly Options) are renowned across Australia • Almost 30% of children and young from 25 years to 64 years of age with for their excellent value. All HIF people are overweight or obese and significant differences between age Options products automatically include increasingly likely to develop long term groups and gender as shown in the “SmartTeeth” dental benefits (paying health conditions such as asthma table below: up to 100% of the HIF deemed fee for and diabetes Hospitalisation rate by age group preventative services no matter which dentist you see) and complementary • In any year the hospitalisation rate for and gender (Australia 2005-06) services including remedial massage Australian children will be around 13% Gender/Age 25-34 35-44 45-54 55-64 and acupuncture. (15% male, 11% female), the most Males 16% 22% 32% 54% common reasons being respiratory Each increasing level of HIF Options Females 39% 32% 34% 48% conditions, injury or poisoning will cover you for a greater number of • 10% of young people are likely services or pay increased benefits or to have a long term mental or So, how are you faring compared annual limits. If you anticipate you or behavioural problem (including to the above statistics? your family will require a lengthy course conditions linked to substance abuse) If you have been affected by one or more of treatment or additional services in and likely to require hospitalisation or of the above mentioned conditions, don’t coming years, it makes sense to change outpatient psychological treatment be downhearted (you are more normal to a higher level of cover well in advance • In the “working years” age group than you may think!). But like the rest (some waiting periods will apply before of 25-64 year olds, most people of us “normal” people, you should seek you can access the higher benefits). (90%) have at least one long-term regular health advice and take action to HIF hospital products like Gold and health condition, the most common manage or improve your condition. GoldStar hospital provide the highest (under 34 year olds) being long level of medical cover possible, with or short sightedness and asthma, If you have excellent health, good on you GoldStar automatically including private and in people over 45 years of age, and remember that HIF Options covers room accommodation and members hypertensive disease (high blood will reward you with benefit payments for on Gold Hospital being fully covered for pressure) and high cholesterol a generous range of preventative health a shared room but having the option of become more evident services such as dental check-ups and healthy lifestyle programmes. choosing a private room by making a • The most common reasons for males daily co-payment. And with Gold, if you visiting their GP will be hypertension And of course, having suitable HIF cover are having a baby, we’ll give you a private (9.4%), upper respiratory infection will ensure you avoid huge medical bills room for up to five days. (5.3%) lipid (cholesterol) disorders (and very long waits in the public system) (4.5%), back complaints (4.5%) and in case of an emergency, accidental Both covers are available with a range of diabetes (4.1%) injury or other unexpected illnesses. excess choices so you can reduce your • The most common reasons for premium to suit your budget by selecting females visiting their GP will be Are you covered for the health a higher upfront excess. And if you hypertension (7.1%), depression conditions which may affect you take up either Gold or GoldStar with an (5.8%), gynaecological check up or your family? excess, it will not apply to your eligible children should they be admitted to a (5.1%), upper respiratory infection HIF has a range of hospital and ancillary hospital. (4.8%) and lipid (cholesterol) (general treatment) covers designed to disorders (3.1%) suit your life stage, health risks and budget. MARCH 2011 | Issue 17 With so many negative physical HIF’s other hospital products do not In Good manifestations, not to mention the cover (or limit benefits for) certain Health emotional damage stress can cause, services such as obstetrics, eye surgery, it is wise to take as many measures as joint replacement and cardio-thoracic possible to reduce stress. conditions. Stress and anxiety Reducing stress Various events and circumstances These covers are typically suitable for in our day to day lives can make us If you are suffering from work related younger people who may not want or stressed, and work is often a common stress, there are a number of things you require cover for these conditions and cause. The cumulative effects of stress can do to try and reduce your worries: only wish to pay for the services they can be detrimental to your health, so currently need. • Identify the aspects of your work it helps to recognise stress and take which make you stressed; decide Time to review your cover? steps towards reducing the pressure. what action you can take for each aspect. Some things you will be able Ok, time to confess. HIF sends From the demands of time and to do on your own, others will need statements to all members every year responsibilities, to conflict with bosses the cooperation of your colleagues or explaining what they are covered for. or co-workers and threats to job involve discussions with your boss. But when was the last time you actually security, the total cost of workers’ fully read them? compensation claims for stress-related • Keep organised with lists, calendars conditions is estimated at over $200 and schedules; organise in terms of If you would like to clarify what you are million every year in Australia. priority and check things off your list covered for, or you want to consider when they are completed. other levels of cover, visit our website When we are under stress, we • Take time out to relax with yoga, at hif.com.au, or call us on commonly tense the muscles of the meditation, a long walk, relaxing 1300 13 40 60. shoulders, upper back, neck and music- whatever works for you. face. This can contribute to tension • Drugs, such as alcohol and tobacco, We’d be pleased to advise you on headaches and back aches and won’t alleviate stress and can cause pains. Other signs of stress include the best cover for your stage in life – additional health problems. Avoid depression, anxiety, a drop in work excessive drinking and smoking. that’s what we do! performance, increased sick days, trouble sleeping (resulting in fatigue), • Sometimes the stress is just not worth heart palpitations, gastrointestinal it, and you may need to consider upsets and increased aggression. another job. Seek advice from a career counsellor or psychologist.

The cumulative effects of stress can be detrimental to your health

3 to your question on our website or in Browse our forms online – Need a Welcome our health insurance brochure, just go form to help manage your membership? to our new to our FAQ’s and health glossary on our No worries, simply view our forms online. website to assist you with peace You can also view and download our website of mind. range of brochures and our various Policy Documents. Download the latest edition of our A new year, a new website. And what SmartHealth member magazine Try our new tax savings calculator a website it is! On Friday, 7 January – HIF are proud to be Australia’s first and – Use our handy online tax savings 2011 after much development, HIF still the only carbon neutral health fund. calculator to see if you will incur the launched its brand new web site. We’ve As an alternative to receiving your copy Medicare Levy Surcharge. introduced heaps of new features and of the HIF SmartHealth, you can now tools, so jump online and explore what’s register your email address with us and We’d also love to hear your new. Here are just a few of the great we will send you an email notification thoughts on the new site! features you’ll find on our shiny of when the next SmartHealth can be So if you have any comments or new website... downloaded from our website. This suggestions for things we could do is just another practical way of HIF better (or add in the future), please drop Use our interactive product selector members assisting in reducing carbon an email to us at to get a health insurance quote, and [email protected] emissions and making a positive purchase online – this is a great new contribution to our environment. If you have a query about something tool for new and existing members all that isn’t covered on our website, over the country and the world. With you can still call one of our friendly just a few clicks, anyone can become a customer service representatives on member of HIF from the comfort of their 1300 13 40 60. own home. We have also made it a lot easier for those that need an overseas visitors cover to become a member of HIF.

Enhanced member services 24/7, via our online Member Centre – Thanks to our exciting new online Member Centre, you can now manage your membership at a time that suits you. Some of the new features include: • Update your personal details; • Change your password; • Add a new member; • View your claims history; and • View your tax statements.

Search for your nearest healthcare providers – If you’re looking for a healthcare provider near you, use this section to locate your nearest doctor, hospital, or ancillary provider with on- the-spot claiming enabled. There are no restrictions or penalties to worry about with our healthcare insurance – you’re free to visit whichever practitioner or hospital you like. And remember, as a member you have access to around 500 private hospitals across Australia (a reassuring thought if you’re going to be away from home or you’re planning to relocate).

Browse our handy FAQ’s and health glossary – We know first-hand just how confusing private health insurance can be. But that’s why we’re here – to make everything as simple (and affordable) as possible. So, if you can’t find the answer

MARCH 2011 | Issue 17 HIF – proud sponsor of the Telstra Drug Aware Pro

Surfing’s elite will take on the iconic big waves at Surfer’s Point, Margaret River this April to compete in the Telstra Drug Aware Pro, proudly supported by HIF.

Australian favourites , and are set to compete in the 2011 event, along with home grown hero who will be hoping to go one better after his runner-up result in 2010. Joel Parkinson, fresh from his Vans Triple Crown win in is also expected to make the journey west.

In a further advancement, the Telstra Drug Aware Pro men’s event has been upgraded to the Prime Tour, with prize money increasing to $250,000 and cementing its place as one of the most Telstra Drug Aware Pro men’s event significant events in Australasia. The women’s event will remain a six has been upgraded to the Prime Tour star prime rated WQS Event. Both the men’s and women’s events will be sanctioned by the Association of Surfing Professionals.

The Telstra Drug Aware Pro at Margaret River will be part of a total package of events during the competition week, with a music and arts festival entertaining visitors to the region around the main surfing event. HIF is proudly Western Australian and is World No. 1 and delighted to partner with Surfing WA for this fantastic event as it is an important step in confirming our commitment to ten time ASP World supporting a healthy lifestyle amongst the surfing community. Champion

The Telstra Drug Aware Pro is Western will be attending the Australia’s biggest ever surfing event and will be held from April 3 to 10 Telstra Drug Aware in 2011 at Margaret River. Spectator entry is free. A full list of competing Pro in April. surfers will be announced in March. For more information, visit www.telstradrugawarepro.com.

5 SmartMoney Public hospital waiting list In the latest Western Australian Elective Surgery Wait List Report, at the end With Glenn Oellermann, HIF Commercial Manager of September 2010, there were a total of 15,838 cases on all public hospital Half year results wait lists and the median wait time for For the half year ended 31 December 2010 HIF received $35.9 million in premium elective surgery was 61 days. contributions, an improvement of 15.4% over the same period in the prior year. Rather than improving, the waiting When you consider that there were 13.7% more members at 31 December 2010 list worsened since the 15,724 cases than there were a year earlier, it is evident that most of the premium contributions reported at the end of the June 2010 growth has come from membership growth rather than premium increases. quarter. However, the median wait time In the same period HIF paid out $30.5 million in claims. When compared to the for elective surgery improved from same period in the prior year total claims increased by 19.3%. Hospital and 70 days for the June 2010 quarter to Medical claims increased by 10.2% and Ancillary claims increased by 23.6%. 61 days for the December 2010 quarter. Once again, evidence of a greater proportion of premium contributions being Whichever way, 61 days is a long time returned to members by way of rebates. to wait if you need immediate or urgent medical assistance. That’s where we The top 5 claims for the half year were: come in. Patient A: Cancer treatment $ 95,861 Tax planning Patient B: Heart surgery $ 72,147 With the end of the financial year fast Patient C: Heart surgery $ 65,933 approaching it might be worthwhile Patient D: ICU after surgery complications $ 65,249 considering the timing of any planned Patient E: Heart surgery $ 63,367 major medical or dental expenditure. The more expenditure you can consolidate into a single tax year the more chance you have of benefiting from the Net Medical Expenses Tax Offset. Member Net medical expenses consist of a wide range of qualifying medical and rewards for dental expenses paid, less any refund entitlements from Medicare or HIF. You people who can claim a tax offset of 20% of your are smart. qualifying net medical expenses over $2,000 (from July 1, 2010 – it was $1,500 for 2009-10). There is no upper We’d like to give you a present. limit on the amount you can claim. Then another. And another... If you want to find out more about HIF would like to encourage you to the medical and dental expenditure spread the word about our health that qualifies for the tax offset and to insurance among your friends and family seek specific advice contact your tax by rewarding you for every successful accountant or the Australian referral you make. Taxation Office. Every time someone joins us and mentions your name, we’ll reward you A $70 Coles Group and Myer gift card that can be with a $70 Coles-Myer gift card. used at any of these stores: Coles, Myer, Target, Kmart, Officeworks, Liquorland, Vintage Cellars. For more information check out the Members Centre on our website hif.com.au.

Telephone: 1300 13 40 60 Fax: 08 9328 3345 HIF Privacy Policy Keeping your personal information private and Web: hif.com.au Email: [email protected] confidential is important to us. However, this information may be used by us or disclosed to a third party, including a Government Agency or Visit: 60-62 Stirling Street, Perth a person contracted to HIF, to inter alia assist us manage claims (including auditing) and ensure the interests of HIF members are preserved. Go to hif.com.au for a full copy of HIF’s Privacy Policy. Australia’s first certified Carbon Neutral health fund. RARE_HIF17997