Medibank has topped the list of health funds that have shed the greatest number of members, according to a new report.
The Private Health Insurance Ombudsman's latest State of the Health Funds Report shows that Medibank lost 45,676 customers between June 2015 and June 2016, followed by Westfund, which lost 865, and HCF, which said goodbye to 502.
More BusinessDay Videos
- Video duration
- 02:34
Forget banks, your health insurance is a ...
Forget banks, your health insurance is a rip-off
The utter gall of NIB in boasting about ripping off the public makes the banks look nice.
Up Next
How your soft drink is bottled
- Video duration
- 02:18
- Video duration
- 02:18
How your soft drink is bottled
How your soft drink is bottled
Clean technology is helping bottle your soft drink more efficiently than ever before.
Up Next
Blackmail, extortion and slavery: Australia's visa fraud victims
- Video duration
- 02:47
- Video duration
- 02:47
Blackmail, extortion and slavery: ...
Blackmail, extortion and slavery: Australia's visa fraud victims
Pawanjeet Heir and her family have been failed by the immigration system. Now she is is facing her worst nightmare: deportation.
Up Next
Why new jets could destroy airlines
- Video duration
- 02:24
- Video duration
- 02:24
Why new jets could destroy airlines
Why new jets could destroy airlines
The global aviation map is about to shift in a way we've not seen in three decades. New fuel-efficient planes means we could see a lot more long-haul direct flights, but that could be bad for airlines.
Up Next
CBA raises interest rates
- Video duration
- 01:54
- Video duration
- 01:54
CBA raises interest rates
CBA raises interest rates
The Commonwealth Bank is raising home loan rates for both owner-occupiers and investors. (Courtesy ABC News 24)
Up Next
Have the wheels fallen off the Trump Trade?
- Video duration
- 02:38
- Video duration
- 02:38
Have the wheels fallen off the Trump ...
Have the wheels fallen off the Trump Trade?
Financial market participants are focused on the Trump administrations ability to pass healthcare legislation. We look at what's involved and question whether markets have become vulnerable to greater downside? (Video produced in commercial partnership between Fairfax Media and IG Markets).
Up Next
Did Murdoch, Seven pay too much for AFL rights?
- Video duration
- 02:16
- Video duration
- 02:16
Did Murdoch, Seven pay too much for AFL ...
Did Murdoch, Seven pay too much for AFL rights?
Australian Financial Review sports business reporter John Stensholt breaks down the $2.5 billion AFL broadcast deal.
Up Next
Backlash over YouTube ads
- Video duration
- 00:59
- Video duration
- 00:59
Backlash over YouTube ads
Backlash over YouTube ads
Big-name companies are suspending digital advertising on Google's YouTube site over concerns their ads run next to offensive videos.
Forget banks, your health insurance is a rip-off
The utter gall of NIB in boasting about ripping off the public makes the banks look nice.
The biggest winners from the exodus were HBF, which welcomed 49,949 new policyholders, Bupa, which won over 38,235, and NIB, which added 19,501.
The figures confirm Medibank had a tough 2016, with the Australian Competition and Consumer Commission accusing it of reducing coverage without notifying policyholders and an IT bungle that delayed the delivery of tax statements.
The Ombudsman received 4416 complaints, an increase of 3.5 per cent on the previous year's figure.
The report also shows that despite having a market share of 27.6 per cent, Medibank accounted for 40.2 per cent of all complaints.
"Medibank is absolutely committed to delivering improved products and services for our customers and simply doing a better job for them," its chief customer officer David Koczkar told Fairfax Media.
"Our share of Ombudsman complaints has fallen recently as a result of our investment in customer service and we remain focused on improving our customers' experience."
Overall, the industry experienced a growth of 1.35 per cent (86,939 memberships) in 2015-16.
However, confusing policies, annual premium increases of about 5 per cent, and concerns about "junk" policies have led to a declining rate in the take-up of health insurance.
Restricted membership funds, such as CBHS, Defence Health and Teachers Health, enjoyed membership increases of an average 6 per cent.
Gerard Fogarty, chairman of Members Own Health Funds, a group of 17 not-for-profit and mutual health funds, said while affordability was a growing concern, people valued insurance and searched for better deals.
He said Members Own recorded a 66.3 per cent growth in its share of the industry's net growth in 2015-16, compared with 12 per cent for the big three – Medibank, Bupa, and HCF.
He said the growth was at the expense of the for-profit health funds.
"We know that the member-owned funds give more back to their members than the for-profits, and member-owned funds have much happier and satisfied members, and that's shown by the amount of complaints compared to the market share," said Mr Fogarty, also chief executive of Defence Health.
The Ombudsman's figures have been released at the busiest time of the year for the industry, as people seek to switch funds ahead of the April 1 premium increase.
Premiums have consistently risen on April 1 for the past seven years. Of the big four health funds, NIB's premiums have increased by 48.7 per cent since 2010, HCF 46.6 per cent, Medibank 45.3 per cent, and Bupa 43.7 per cent.
A survey by comparison website Finder found the average adult sticks with the same health fund for 11.8 years.
"As with other financial products, you should review your cover at least every 12 months because you could be missing out on the savings that typically come from shopping around," said Finder's Bessie Hassan.