MBF insurance payouts up by $105m

PRIVATE health insurance payments by the nation's second-biggest private health fund, MBF, grew by $105 million in the past year as members claimed more for health care.

PRIVATE health insurance payments by the nation's second-biggest private health fund, MBF, grew by $105 million in the past year as members claimed more for health care.

MBF Australia yesterday reported an annual profit of $181 million, up from $149.8 million in 2004-05.

Benefits paid to customers cost the fund $1.755 billion in 2005-06, the fund said.

The biggest proportion of this, hospital benefits, rose 6.2 per cent to $1.0978 billion while payments for dental care, optical and physiotherapy rose 6.4 per cent to $28.5 million.

However, the number of people buying private health insurance had "stagnated" with little movement between funds, MBF chief executive Eric Dodd said yesterday. Mr Dodd said growth through new customers was "difficult" and instead he flagged plans to expand through "acquisition and alliances".

"Growth is very difficult to achieve in this market. It's not like in other markets where you can grow by generic means," Mr Dodd said.

"The growth will come from acquisition and alliances. It won't come purely from running the business better."

Mr Dodd did not rule out listing MBF on the Australian Stock Exchange but said there were no immediate plans to do so.

He also expressed disappointment in the Government's decision to delay the sale of Medibank Private.

Mr Dodd, who was interested in buying Medibank in conjunction with another fund, had previously described the sale of the government-owned insurer as an opportunity for industry reform.

"We will continue to explore our remaining options to continue our overall objective of becoming a truly national private health insurer," Mr Dodd said.

Additional reporting: AAP