The Australian government has confirmed the sale of Medibank Private after an independently prepared scoping study found no compelling reason for the government to hold on to the private health fund.
Finance Minister Mathias Cormann made the announcement on March 26 and it was swiftly followed by a favourable statement from Australia's largest health insurance provider, Medibank.
"Medibank welcomes this announcement and we look forward to working with the Government and its advisers over the course of sale process," Medibank Chair Elizabeth Alexander said.
The sale is forecast to go ahead in the 2014-15 financial year, but the specific timeline has not yet been released. These details are expected to be released in the May 13 budget announcement.
While some begin to worry how the impending sale will affect the private health insurance market, Ms Alexander reassures Medibank's many members that their benefits should not be negatively impacted.
"To our many customers, please be assured we remain focussed on delivering excellent value and service. This will not change," she explained.
Supporting Ms Alexander's statement, Medibank Managing Director George Savvides added his promise to continue the high quality of care members currently have access to.
"Let me reassure you that the Medibank Australians have trusted for years is the very same Medibank that will continue to look after your health well into the future," he said.
Additionally, Mr Cormann revealed the scoping study found no evidence premiums would increase as a result of the sale. However, some industry leaders have expressed concerns that the cost of private health insurance could climb once the sale goes forward.
If you're concerned about how this impending sale will impact on your health insurance premiums, get in touch with the team at HICA today. As a specialist broker, HICA can offer advice and guidance on the Australian health insurance industry to help you might the best decisions for your health insurance needs.