Mbf Policyholders To Get Money News In April

The Age

Saturday February 9, 2008

Jesse Hogan

MBF's 800,000 policyholders will find out in April how much money they will receive from the health insurer and its former rival, BUPA Australia.

MBF directors late last year scrapped their plan to demutualise and list on the stock exchange, in favour of the certainty of $2.41 billion in cash from BUPA, owner of HBA.

The board's decision was ratified yesterday by the MBF Council - a small group of the insurer's policyholders who oversee the board. The decision must now be put to policyholders at a meeting in May.

BUPA managing director Richard Bowden welcomed the progression of the merger.

"It needed 75% of the council to vote yes (and) you're always a bit doubtful until you get that, so now we're one step closer," he said.

Mr Bowden said it was not yet appropriate for the insurers to be discussing their plans as a single entity, "because MBF now has to take it to their policyholders and I wouldn't like to second-guess their judgement".

The combined MBF-BUPA would continue as a mutualised fund and would rival government-owned Medibank Private as the nation's biggest health insurer. Mr Bowden said this could produce cost savings.

"Obviously you need to be careful about that because . . . we want our customers to have access to good-quality health care - we're not talking about buying cheap health care," he said.

While MBF is being swallowed by BUPA, chairman John Conde and chief executive Eric Dodd will take on the same roles for BUPA.

"Bringing MBF and BUPA Australia together will result in strong and trusted health insurance brands operating in each state, achieving MBF's long-held goal of becoming a truly national participant in the private health insurance industry," Mr Conde said.

Payments to policyholders are likely to be made in early June, with the merger to be formalised by the end of June.

LINK

? www.mbf.com.au

© 2008 The Age

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