A health fund which is owned by members primarily focuses on the interests of members and not of shareholders or private equity owners. A member own health fund is group of fifteen domestically operated Australian health insurers who operate for the sole purpose of benefitting their members. The health insurance industry is mainly dominated by private players or foreign industries for whom profit is the main motive.
In light of the over dominance by private and foreign players, it is quite important that domestically owned health funds are given importance and should be chosen as the first choice in the health insurance. Members own health funds run purely on non- profit basis and customer satisfaction and benefit is their sole objective.
Benefits of health funds owned by members
- Most visible benefit is that these funds provide much advantage and charge fewer premiums because they are not supposed to pass on benefits to shareholders and foreign investors.
- Funds owned by members provide higher percentage of return on premiums as compared to funds owned through private companies. Member funds are quite suitable in providing a sense of security and peace of mind.
- As these funds operate domestically, member’s funds are more aware of the needs and aspiration of people who have opted for health funds. Domestically owned funds can be realized easily and quickly and can be quite valuable in this regard.
- One of the most important factors which determine the success of funds owned by members is the wide range of section they offer. There are different numbers of members fund and choice can be made among them. You have the luxury of comparing and choosing the one which you find most suitable according to your needs.
Funds owned by members are slowly getting popular and it is about time that these funds will capture more market in health insurance sector than private or foreign players.