Focus on Health Funds

WOB subscribers can access a list of health funds (name, website, contact details, number of directors) by clicking this link: http://www.womenonboards.org.au/pubs/pubs_subscribe/index.htm

Overview

As at October 2007 there were 36 Registered Health Benefits Organisations (RHBOs). They are regulated by PHIAC (Private Health Insurance Administration Council).

Five RHBOs operated on a for-profit basis. The rest operated on a not-for-profit basis and can be characterised as mutuals.

There is a significant range in the size of RHBOs. The industry is dominated by the six largest which, when measured by premium income, share 76.2% of the market. Twenty-five each have less than 1.0% of market share and, when combined, comprise 7.8% of the market.

Not all organisations are active in all markets. Smaller and restricted membership organisations are more likely to focus on a particular market niche through which their viability is maintained. Many smaller and medium-sized organisations share outsourced IT systems and contracting arrangements that enable them to remain competitive in the industry.

Becoming a director

Directors are elected in accord with the constitution of each entity. Members of Mutuals vote on directors. In the for profit sector the shareholders elect. In the case of BUPA Australia the UK parent nomintaes the board. For Medibank Private the Federal Government appoints directors.

Most have nomination committees and the regulator has encouraged them to focus on people with business skills including financial, insurance/actuarial, IT (for larger funds; smaller ones outsource IT) and a knowledge of the health sector.

PHIAC expects that all directors either have or will undertake the AICD Comapny Directors program. PHIAC conducts an education program for directors annually.

Statistics

WOB has been able to access information on 27 of the Registered Health Funds, including the composition of their boards.

The total number of directors in our sample is 193 of which 42 (22%) are women. This compares with the Credit Unions where 19% of directors are female.

Heath Fund Boards vary in size from 4 to 12 with the average being 7.4 directors. The average number is 1.7 female directors.

Where to target

The distribution of female board members is more even than the Credit Union information provided. There are four health funds (12% of sample) with no female board members and 7 (28%) with only one. The open funds Druids Friendly Society and Westfund have no female directors.

So where to target? One strategy could be to look at the location of the headquarters, get a copy of the constitution, see if you or someone knows the company secretary or any of the directors and go from there. Access the PHIAC site for up to date information . WOB will be looking to invite Credit Union and Health Fund dirctors to events in 2008 to start the process. Good luck and any feedback is welcome.

The information for this article has been sourced from publicly available information and the PHIAC website. Analysis has been done by WOB. The CEO of PHIAC is WOBer Gail Ginnane who is willing to tbe contacted by interested WOBers.