GRAND UNITED,
HBA,
HCF,
IOOF,
MANCHESTER UNITY,
MBF,
MEDIBANK,
NIB
HCF Health
Insurance News
"HCF provides better cover for members as healthcare costs continue to rise"
Health fund in $256m merger
The consolidation of the private health Industry has continued with the
unveiling of a $256 million merger between HCF and the smaller provider
Manchester Unity.
In a move that follows the float of NIB last year and the subsequent $2.4
billion merger of BUPA Australia and MBF, Manchester Unity will be folded
into HCF.
The former NSW Liberal leader John Brogden, who became chief executive of
Sydney-based Manchester Unity two years ago, will be left without a management
role in the new fund.
HCF which is a not-for-profit insurer, is the third largest such provider in the
country after the Federal Government owned Medibank Private and BUDA-MBF.
Implementation Deed Signed
The two companies have signed an implementation deed outlining a proposed merger
that would lead to MUA's 90,000 members receiving a cash payment if they
approved the deal.
The merger would cement HCF's position as Australia's third-largest health
insurer after Medibank Private and the recently merged BUPA and MBF.
MUA's board will recommend the proposal to members in the absence of a superior
offer and subject to a report by an independent expert confirming the proposal
was in the best interests of members, according to MUA.
"HCF has also committed to retaining the majority of MUA's staff for at least 12
months after the merger is approved," said Robert Goaley, MUA chairman.
Members of MUA, Australia's ninth-largest health insurer, will receive a cash
payment depending upon the type of policy held, length of membership and
allocation rules yet to be approved by the board.
"Members will also gain access to the wider range of services offered by HCF,
including optical and dental clinics," said John Brogden, MUA's chief executive.
Terry Smith, HCF managing director, said if the merger was approved, HCF would
be "financially stronger, more efficient and flexible, and even better placed to
grow at a faster than industry rate".
If approved, a combined MUA and HCF would have more than 545,000 policyholders
and a combined market share of 11.5 per cent of the national private health
insurance market.
The merger proposal comes amid a consolidating health fund market that saw
UK-based BUPA Australia finalise a $2.41 billion takeover of MBF in June.
MUA members will vote on the HCF proposal in late November. The merger is
dependent upon regulatory clearance. For more information on HCF or this
latest health Insurance fund merger, please refer to contact details below;
HCF
Head Office,
403 George Street
Sydney NSW 2000
Phone: 13 1334
Email: service@hcf.com.au
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