Not-for-profit health funds use any revenue for the benefit of their members and to meet any operational costs.
Some funds restrict membership to those who work in certain industries, and their families, while others are open to anyone.
You can compare both types of funds right here on Finder.
What is a not-for-profit health fund?
A not-for-profit health fund is one that sells health insurance but isn't trying to make money for owners or shareholders. Instead, any remaining profits are put toward improving the service reducing premiums. This is unlike a for-profit health fund, which is owned by outside interests and makes a profit out of members' premiums to provide a return to its owners and/or shareholders.
Many not-for-profit health funds are open to anyone – such funds include like HCF, Frank Health Insurance, HBF and Westfund. Others, however, restrict membership to people from a particular employment group or professional association – some restricted health funds include Teachers Health, Defence and Police Health.
List of not-for-profit health insurers
According to privatehealth.gov.au, these funds report as a mutual organisation that operates on a not-for-profit basis:
Finder survey: Do Australians trust private health insurance funds?
Response
Yes
53.98%
No
46.02%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023
What are the differences between a not-for-profit and a for-profit health fund?
There are several differences between not-for-profit and for-profit health funds.
They have different business structures – a not-for-profit is a mutual organisation, while a for-profit is often a corporation with owners and shareholders.
Not-for-profit funds sometimes have lower premiums. Because they exist solely to benefit members, they return a higher percentage of funds to their members in the form of cheaper premiums. However, smaller not-for-profit funds may not have the scale to compete with larger funds on price.
Not-for-profit funds often have better benefits – because all monies are returned to the fund, any surplus is spent on improving member benefits.
Not-for-profit funds can have more flexible terms – conditions such as excesses, waiting periods and pre-existing conditions are sometimes reduced or waived altogether.
Why compare health insurance with Finder?
We don't ask for your phone or email to see prices.
With 1 click, you can open your results to nearly every fund in Australia.
You pay the same price as going direct – we charge no fees.
Depending on your age, you may be eligible for an
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$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
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*Prices updated March 2024, in line with Finder's
database of health insurance policies. Prices are based
on a single individual with less than $93,000 income and
living in Sydney with a $750 excess.
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Why you can trust Finder's health insurance experts
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching health insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
Frequently asked questions
In a Finder survey, participants were asked if they would be more likely to choose a not-for-profit health insurer over a for-profit one. Not surprisingly 36.4% said yes, but more interestingly, 27.4% said they didn't know there were not-for-profit health insurers out there.
Before you rush out and look for a not-for-profit health fund to join, you should keep the following things in mind:
While most restricted funds are open to family members, this may be limited to immediate family only (ie, spouse and dependent children).
Previous employment in an industry can go back a number of years, so you may be eligible to join a restricted fund even if you haven't worked in an industry for some time.
Membership of a restricted health fund can sometimes also give you access to other member benefits like industry super and life insurance.
Cheaper premiums should only be one consideration when looking at not-for-profit health funds. You also need to ensure the level of cover on offer is adequate for your needs.
Not-for-profit health funds are sometimes cheaper than for-profit funds, but not always. While not-for-profit funds use profits to lower premiums, they tend to be smaller than for-profit funds. This means they may not have the scale to lower costs like larger funds can. Even so, not-for-profit funds are generally competitive on price.
Some of the most popular not-for-profit funds include: HCF, HBF, Nurses & Midwives Health, Police Health and Emergency Services Health.
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
James's expertise
James has written 255 Finder guides across topics including:
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We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
HCF
Peoplecare Health Insurance
HBF
GMHBA
ACA
CDH
Defence Health
Emergency Services Health
Frank
Health Partners
Latrobe Health Services
Mildura Health Fund
Nurses & Midwives Health
Phoenix Health Fund
Police Health
RT Health Fund
RBHS
St.Lukes Health
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching health insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
