MBF News

Combining MBF and BUPA Australia - a positive step

Eligible MBF contributors have been sent an Information Memorandum which details a proposed $2.41 billion offer from BUPA Australia to combine the businesses of MBF and BUPA Australia Health.

As reported in the last issue of LivingWell, the MBF Board considered a number of alternatives to change MBF's structure to enable it to continue to grow and support contributors and their families.

Following detailed consideration, the Board determined that combining the businesses of MBF and BUPA Australia Health was in the best interests of both MBF and its contributors.

The Board believes the certainty offered by the proposal is a better outcome for eligible MBF contributors as a whole than the original proposal to demutualise and list, which was referred to in the previous edition of LivingWell, especially given the recent volatility in financial markets.

The Board has recommended unanimously that eligible MBF contributors vote in favour of the proposal to combine the businesses of the MBF Group and the BUPA Australia Group at a Scheme Meeting scheduled to be held on 12 May 2008.

Eligible MBF contributors will receive a cash allocation if the proposal is implemented. An estimate of each eligible MBF contributor's cash allocation is included in the Chairman's letter and on the Allocation Form accompanying the Information Memorandum sent to them.

Importantly, if the proposal is implemented the combined group will be in a stronger position to limit premium increases.

BUPA Australia Health is part of the BUPA Group, a global health and care organisation. The proposal will bring together two significant businesses with strong and trusted brands and a proud heritage of providing peace of mind to generations of contributors across Australia for more than 60 years.

MBF has provided Australians with private health insurance for more than 60 years and the health fund of BUPA Australia Health's brands - HBA in Victoria and Mutual Community in South Australia - has been doing so for more than 70 years.

Together, MBF and BUPA Australia Health will create a competitive private health insurance group with a national presence. This is an objective that MBF has long aspired to achieve.

Importantly, the ultimate holding company of the BUPA Group does not have any shareholders and is therefore able to reinvest its profits back into its businesses globally for the benefit of customers.

If you are an eligible MBF contributor, the Information Memorandum sets out how you can vote on the proposal. It is possible to vote in person by attending the Scheme Meeting on 12 May 2008.

If you are unable to attend the Scheme Meeting, you can appoint a proxy by completing and returning the Proxy Form sent with the Information Memorandum or by visiting the MBF website at www.mbf.com.au and following the instructions on how to lodge an electronic proxy. Proxy Forms must be received by no later than 11:00am (AEST) on 10 May 2008.

If you have misplaced your Proxy Form you can obtain a replacement by calling the MBF Scheme Hotline on 133 505.

 

The choice is yours

MBF has launched MBF Choices, a new product specifically designed for young, healthy singles and couples. It gives you flexibility on how much you can claim on the extras you use most. Your dental Limits will also be increased if you look after yourself, and for just being an MBF Choices customer, your Limits across other benefits will also increase over time (capped after five years).

MBF Choices provides limited Hospital Cover, plus extras benefits, such as where you get to choose how much you get back: either 70%, 80% or 90% of the charges back for selected optical, physio, chiro and general dental when you see an MBF MemberCare provider.

You also get unexpected bonuses with MBF Choices, such as eight days free budget travel insurance a year.* And if you have an accident that's left you with a fracture (or worse), you could be entitled to receive a one-off payment. As well, as an MBF customer, you have access to in2life, where you will find information on better ways to take control of your health as well as discounts with our in2life partners on products such as movie tickets and theme parks.

The product is designed for healthy, young people who look after themselves. To keep the premiums as affordable as possible, only the hospital services you are more likely to need are included (such as removal of wisdom teeth and tonsils, appendicitis treatment and shoulder and knee arthroscopy and reconstructions). You're also covered for emergency ambulance transport once your application has been accepted.

So, if you're young and single - or a couple - MBF Choices may work for you. Claiming is subject to the standard conditions of cover including waiting periods and limits.

For more details visit www.mbf.com.au.

* Subject to normal MBF Travel Insurance Application process. MBF Accident Cash Benefit is issued by MBF Life Limited. The Product Disclosure Statement (PDS) for MBF Accident Cash Benefit is contained in the MBF Choices brochure available from MBF. You should consider the PDS when making a decision about MBF Accident Cash Benefit. MBF Accident Cash Benefit is only available to customers aged 18-64.

 

 

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