Medibank Merges With Health Service Australia

Australia's biggest health insurer, Medibank Private [77838], has merged with Health Services Australia, a provider of occupational and travel health services for corporate and government clients, with the aim to offer more integrated health and insurance services.

Medibank Private, the largest and only national private health insurer in Australia, said the merger will transform the company from a single-product insurer to a broader health company. The two companies continue to operate under their own names but they will offer more integrated services.

Through HSA, Medibank Private said it will offer occupational and travel health services to government and corporate clients, including health assessments, workplace health and injury prevention, rehabilitation case management and return to work programs.

HSA will also enable Medibank Private to accelerate the development of its own preventative and health management programs, said Medibank Private in a statement.

"We are moving from the traditional health insurance role of passive player, to be an active participant in our members' health and well being," said George Savvides, managing director of Medibank Private. HSA is "a major component" for Medibank Private's plan to become a leading provider of private health insurance and health solutions, he added.

Medibank Private is also working to "take pressure off" its premiums. "Health care is always going to be an expensive business, but Medibank must help keep private health insurance premiums affordable by making sure we operate as efficiently as possible," said Savvides.

Through the expansion of HSA's business lines in "health for industry" and "work solutions," Savvides noted the merger can enhance the insurer's workplace health services to corporate in Australia.

HSA Chief Executive Stan Macionis said the merger will allow HSA to develop a greater range of services for corporate clients and to reach to broader community.

With 100 retail centers across the states, Medibank Private offers health insurance to nearly three million people, representing about 30% of private health insurance market in Australia.

(By Iris Lai, Hong Kong bureau manager: [email protected])