The Australian Prudential Regulation Authority (APRA) has released its comprehensive statistical report for the private health insurance (PHI) industry for the 2023-24 financial year.
The report provides an overview of financial performance, policy coverage, and benefit payments, with detailed data at the insurer level.
The PHI industry generated a combined insurance revenue of $31.25 billion during the reporting year.
Among the top contributors, Bupa HI Pty Ltd reported $8.1 billion, followed by Medibank Private Limited with $7.57 billion and the Hospitals Contribution Fund of Australia Ltd (HCF) with $3.91 billion.
Total expenses related to insurance services reached $28.08 billion, while investment outcomes added $970 million in income across the industry. Other profit and loss adjustments reduced overall earnings by $363 million.
The industry reported a pre-tax profit of $2.11 billion, with $533 million allocated to income tax expenses, resulting in an after-tax profit of $1.58 billion.
Several insurers reported strong profits after tax, including Medibank ($552 million) and Bupa ($412 million). In contrast, some insurers reported losses from continuing operations after tax, with HBF Health Limited registering a $18 million deficit.
As of September 2024, 5.9 million Australians, or 45% of the population, held hospital policies, reflecting a net increase of 105,601 policies since June, according to APRA.
General treatment policies, which include services like dental and physiotherapy, reached 14.7 million people, representing 54.7% of the population. This marks an increase of 112,764 policies during the same period.
Membership growth was strongest in the 25-29 age group. However, the 0-4 age bracket experienced the most significant net increase overall.
Private health insurers paid $4.82 billion in hospital-related benefits during the September quarter. Acute care accounted for $2.65 billion of this amount, while $660 million went towards medical devices. General treatment benefits totalled $1.57 billion, with $894.3 million allocated to dental services.
The data release comes as Australians are encouraged to review and claim unused extras benefits before most annual limits reset in January. This period typically sees increased utilisation of general treatment services as policyholders seek to maximise their entitlements.
“Nothing is more precious than our health and the health of our loved ones, but sadly, it is often taken for granted until something goes wrong,” said Matthew Koce, CEO of Members Health.
