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SA health fund battles the “big two”

Mar 04, 2015
Health Partners chief executive Byron Gregory

Health Partners chief executive Byron Gregory

Joining a national alliance of 15 not-for-profit and mutual health funds has created an opportunity to market the advantages of non-listed funds and to reach out to new audiences, according to Health Partners chief executive Byron Gregory.

The Adelaide-based fund is part of the Members Own Health Funds group which has started a national advertising campaign to challenge the market dominance of BUPA and the recently privatised Medibank Private.

Gregory says the alliance of like-minded funds offer members better value than organisations that have large public shareholdings or foreign ownership.

“We believe that maximising shareholder returns or sending profits to offshore owners is not an appropriate philosophy to apply to people’s health needs,” Gregory told Indaily.

“Put simply, health funds should exist for people, not profit – a person should be treated as a member not a profit centre.”

Gregory said the current marketing campaign is reinforcing to existing members the value of not-for-profit funds and inviting comparisons with the ‘big two’ providers.

Gregory acknowledges that health funds need to reach out to a younger audience.

“Every fund has pretty much the same demographic. We are all top heavy in the 40 years plus age group and particularly heavy in the 50-75 age group, and then it tapers off,” Gregory said.

“So every insurer is in the market to try and attract the 20 plus age group. And those people are very savvy, they understand value and they will look around for good deals.

“I think we have been good communicators with our members but we have a better message to get out, and we haven’t been getting the full message out. Our members know that it’s a good value proposition but someone who is not in the product or is with another fund might not know that.

“So what we are doing is expanding and strengthening the story and that way people can make an informed choice. I think our messaging over time will start to resonate with people and that younger demographic because they are very much part of our future and that is how the insurance book always works.”

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