rob seljak - teachers union health (tuh) - why don’t more people switch health funds?
DESCRIPTION
Rob Seljak delivered the presentation at the 2014 Health Insurance Summit. The 2014 Health Insurance Summit focused on how legislative changes affect the future of health insurance in funding, membership and services. For more information about the event, please visit: http://bit.ly/HISummit14TRANSCRIPT
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Why don’t more people switch health funds?
Rob Seljak
CEO, TUH
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How many switch?
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How many switch?
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Are more people switching?
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Are more people switching?
YESBUT
The rate of switching is still not material
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Should we be worried?
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Should we be worried?
ITDEPENDS
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Why do people switch?
49%
39% 32%
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How about intermediaries?
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Why don’t more people switch?
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Privately, we won’t change
“There’s probably about 100,000 to
120,000 people changing insurers of
about 11 million people covered
which is a very small number’’
Shaun GarthCEO, PHIAC
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Telco switching
“Almost half of Australian mobile phone
subscribers have switched providers in the past
three years, and 40 per cent are considering a
change in the next 12 months, new research
shows”
Sydney Morning Herald
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Ombudsman complaints
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Ombudsman complaints
PHI vs Telco complaints
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Why don’t more people switch?
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Product design
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Regulatory framework
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Premium variabilityPremium increases +/- 2% from industry average
2004-2008 2009-2014
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Why don’t more people switch?
Too complicatedToo much effortToo time consuming (IPSOS)
BUT WE TELL THEM IT’S EASY!
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Transfer process
Slow
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Transfer process
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Transfer process
Bureaucratic
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Transfer process
Not enforced
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Awareness of
Transfer Rules
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What would cause more people to switch?
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Questions
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Thank you
Sources:
• PHIAC - Portability, switching and competition in the Australian PHI market – July 2013
• IPSOS – Health Care and Insurance Australia Report - 2013