Learn about what makes Members Own funds different, and how they perform compared to commercial funds.
Members Own 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 Own branded organisations pay a larger proportion of premiums back to members in the form of benefits and claims paid.
- 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.
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 Own health funds give more back to their members than the major commercial health funds in relation to premiums paid. However, the benefits of Members Own 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.
Members own funds vs commercial funds
Plain text version: Members own funds vs major commercial funds
|Performance statistic||Members Own funds||Major commercial funds|
|Benefits paid to members relative to premiums||86.8%||84.6%|
|Percentage of member complaints||10.5%||63.2%|
|Member retention rate||86.8%||83.9%|
Contents of this guide
There are 19 participating Members Own health funds in Australia. Many are restricted to certain occupations or groups, and their families, while others are open to all Australians. In addition, there are also nine not-for-profit funds that exist outside of the Members Own network. You can learn more about all of them by making a selection below:
|Fund||Restricted or open?||Learn more|
|ACA Health Benefits Fund||Restricted||More info|
|Australian Unity||Open||More info|
|Defence Health||Restricted||More info|
|Emergency Services Health||Restricted||More info|
|Frank Health Insurance||Open||More info|
|Health Partners||Open||More info|
|Latrobe Health Services||Open||More info|
|Navy Health||Restricted||More info|
|Phoenix Health||Open||More info|
|Police Health||Restricted||More info|
|rt health fund||Restricted||More info|
|St. Lukes Health||Open||More info|
|Teachers Health Fund||Restricted||More info|
|Transport Health||Open||More info|
|Fund||Restricted or open||Learn more|
|CBHS Health Fund||Restricted||More info|
|Cessnock District Health Fund||Open||More info|
|Health Care Insurance (HCI)||Open||More info|
|Health Insurance Fund of Australia (HIF)||Open||More info|
|Health Partners||Open||More info|
|Reserve Bank Health Society||Restricted||More info|
|Westfund Limited||Open||More info|
What are restricted funds?
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 Own 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.Back to top
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