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 Australia 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.