Members Health Fund Alliance
Members Health Fund Alliance is one of the big peak bodies for the health insurance industry, representing most of Australia's not-for-profit health funds.
Key takeaways
- Members Health Fund Alliance is the peak body for most not-for-profit health funds.
- MHFA funds tend to offer good value for money, especially on hospital policies.
What is Members Health Fund Alliance?
Members Health Fund Alliance refers to a group of not-for-profit health funds, including both open health funds and some restricted health funds, dedicated to reinvesting profits back in its membership. What this means is that Members Health Fund Alliance branded organisations pay a larger proportion of premiums back to members in the form of benefits and claims paid.
What's the difference between for-profit funds and not-for-profit funds?
- For-profit funds. While all health funds are obligated to remain financially viable so they can honour claims made by customers, this fund type also needs to deliver profits to the business owners, which may include another health fund or overseas corporation.
- Not-for-profit funds. Like the name suggests, these funds transfer a larger share of the profits to members and are also required to maintain transparency so everyone can see where the money goes. This fund type is typically able to offer lower premiums or additional benefits to members as a result.
How well do Members Health Fund Alliance health funds perform?
According to data from the Private Health Insurance Ombudsman, the Australian Prudential Regulation Authority (APRA) and the Private Health Insurance Administration Council (PHIAC), on average Members Health Fund Alliance health funds give more back to their members than the major commercial health funds in relation to premiums paid. However, the benefits of Members Health Fund Alliance health funds might be even better evidenced by the lower rate of complaints and a higher retention rate, suggesting that they might do a better job of satisfying customers with both price and service.
| Performance statistic | MHFA funds | Non-MHFA funds |
|---|---|---|
| Benefits paid to members relative to premiums | 82.51% | 81.98% |
| Member retention rate | 86.75% | 82.70% |
Which health funds are Members Health Fund Alliance?
There are 29 Members Health Fund Alliance health funds, although some are owned by the same parent fund. Many are restricted to certain occupations or groups, and their families, while others are open to all Australians. That's most of Australia's not-for-profit health funds, but not all. As of writing, GMHBA and Frank aren't members of MHFA.
| Fund | Restricted or Open? |
|---|---|
| ACA Health Benefits Fund | Restricted |
| Australian Unity | Open |
| CBHS | Restricted |
| CBHS Corporate | Open |
| Defence Health | Restricted |
| Doctors Health | Restricted |
| Emergency Services Health | Restricted |
| HBF | Open |
| HCI | Open |
| HCI | Open |
| Health Partners | Open |
| HIF | Open |
| Hunter Health Insurance | Open |
| Latrobe Health Services | Open |
| Mildura | Open |
| Navy Health | Restricted |
| Nurses & Midwives Health | Restricted |
| Peoplecare | Open |
| Phoenix Health | Open |
| Police Health | Restricted |
| Queensland Country Health | Open |
| Reserve Bank Health Society | Restricted |
| rt health fund | Restricted |
| St Lukes | Open |
| Teachers Health Fund | Restricted |
| Transport Health | Open |
| TUH | Restricted |
| UniHealth | Restricted |
| Union Health | Open |
| Westfund | Open |
Are not-for-profit health funds better?
The ideal health fund is one that can deliver the right benefits and the right value. Because all health funds are different it can be worth comparing all the options, both commercial and not, and nonprofits within and without the Members Health Fund Alliance network. Commercial health funds, for example, will often be larger than the non-profits, and able to deliver a scale that non-profits might not. For example, a frequent traveller might benefit from the larger private hospital networks maintained by commercial health funds.
Finder survey: Do people trust private health insurance funds?
| Response | Male | Female |
|---|---|---|
| Yes | 54.58% | 53.26% |
| No | 45.42% | 46.74% |
Source: Finder survey by Pure Profile of 1006 Australians, December 2023
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