MPL, MEDIBANK PRIVATE LIMITED

[blacksheep]

In Reply To: blacksheep's post @ Nov 6 2019, 11:57 AM

Not really a surprise if you read the article posted below in October - was only a matter of time.

Medibank's cost shock is a sector-wide illness

A surprise jump in private hospital costs at Medibank is a problem for the entire sector, just as negotiations start about next year's premiums.
Nov 6, 2019 — 11.37am
Older, fatter, sicker – and more expensive to treat

Medibank Private’s surprise warning on rising claims costs is at once a shock for investors, a reminder of the challenging economics of the broader private insurance sector, and ammunition for Medibank and the wider industry as they prepare to submit their annual premium rise requests to the government in the coming weeks..

read more - https://www.afr.com/chanticleer/medibank-s-...20191106-p537vy

[blacksheep]

In Reply To: blacksheep's post @ Oct 23 2019, 08:55 PM

SP down 8.38% @ $3.115 on revised outlook. Not sure if they've factored in possible higher premiums mentioned in article below, that could see more younger people (especially) leaving private cover. More older policy holders maybe entering but they also require more health services.

Medibank provides update on outlook for FY20

Medibank today provided additional information regarding its full year 2020 outlook, which was released to
the market at the full year 2019 financial results on 22 August 2019.

Since then Medibank has been able to confirm that it has experienced higher than expected claims which
has resulted in a $21 million under provision from the 30 June 2019 claims reserve.

This now indicates that the underlying claims growth per policy unit was 2.4% in FY19 versus the 2.0%
reported at the full year. This when combined with our October claims payments indicates a trend, and we
now expect the increase of claims per policy unit in the second half of FY19 to continue throughout FY20.
These higher claims have been driven by a number of factors, predominately as a result of higher private
hospital payments, which reflects an increase in the average benefit size along with the continuation of
elevated prosthesis costs.

While the industry claims environment remains challenging, we continue to focus on the elements of our
business that we can control, including growing our policyholder numbers. For the first quarter of this
current financial year we have achieved net resident policyholder growth of around 0.6%. This is
approximately up 10,000 policyholders, which is almost double the growth rate seen in the first quarter of
FY19.

We remain confident that we are on track to achieve our milestone to stabilise Medibank brand policyholder
volumes by the end of FY20 and grow in FY21.

Medibank continues to look at additional measures that we can take within our business, including a
continued focus on payment integrity and portfolio management. Additionally, we will continue to maintain
our focus on our own costs, and as a result we expect management expenses to be approximately
$545 million for FY20.

Our recent claims experience highlights the need for further government reform, as private health insurers
remain focused on managing the affordability challenge, while costs continue to rise within the health
system.

There are no changes to other outlook comments provided at the FY19 financial results.

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[blacksheep]

Health insurance premiums to rise after government deal fails to reduce costs

Australians with private health insurance will face hefty premium increases next year - likely to be twice the rate of inflation - after Health Minister Greg Hunt's deal with the medical devices industry failed to lower costs as promised, the peak body for insurers has warned.

Private Healthcare Australia chairman John Hill said Health Minister Greg Hunt's goal of limiting the next round of premium increases to an average three per cent would be "extremely challenging" to meet, after the cost of devices like knee and hip replacements soared by 8.6 per cent

Private health insurers will submit their proposed premium hikes, which must be approved by the Health Department, next month and Mr Hunt will announce the approved price increase in late December, with new premiums to apply from April 1.

An increase of 3.2 per cent would be double the current rate of inflation.

The federal government faces mounting pressure to reduce premiums and reverse what has been described as a "death spiral" in the private health industry, as increasing numbers of younger Australians drop their coverage due to high premiums and a perceived lack of value.

https://www.smh.com.au/politics/federal/hea...022-p5331g.html

[blacksheep]

Medibank Private is being sued by the consumer regulator for allegedly denying benefits to more than 800 members who were entitled to claim on their policies.

Key points:
Medibank says it has already compensated 175 customers a total of $745,691
ACCC alleges Medibank (through its 'ahm' brand) breached the Australian Consumer Law
The regulator says 60 customers had to upgrade their policies "needlessly"
The Australian Competition and Consumer Commission (ACCC) has filed a claim in the Federal Court, accusing the health insurer of making false representations to its members and breaching consumer laws.

https://www.abc.net.au/news/2019-09-03/medi...t-accc/11473566

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[nipper]

Medibank Private Ltd (MPL) held an Investor Day yesterday,
- YTD Health Insurance revenue is slightly below expectations, and
- FY17 Operating Profit is to be broadly in line with FY16.

tough gig, selling a product to healthy people who may not need it now. Especially when premiums increase every year at rates higher than average incomes.

The first PowerPoint chart highlighted "the growing gap between health care costs and wages growth. Between 2007 and 2011 wages grew by 3.7 per cent, or 0.7 per cent a year. Over the same period healthcare costs grew by 9.8 per cent, or 2 per cent a year."

And especially as the lower socio-economic groups are being squeezed, with "more than half the 13 million Australians with private health insurance have annual disposable incomes of less than $50,000. He says that means that "sensitivity to any changes in premiums is very real".

[alonso]

In Reply To: alonso's post @ Jul 15 2015, 02:23 PM

Medibank is coming in for a fair amount of criticism from various quarters. Have the bean counters & financial modellers gained too much influence?
This from the AFR:

"The head of the doctors lobby, Brian Owler, says Medibank Private's hardball negotiating demands are offensive and misunderstand the motivations of health professionals.

Referring to the market-leading insurer's contract negotiation stoush with Catholic provider Calvary Health Care, the Australian Medical Association president said one of the 165 "highly preventable adverse events" that Medibank has said it will not pay for is maternal death associated with childbirth.

"Unfortunately, maternal death can and still does occur in a very small number of cases – as tragic as that is," he told the National Press Club in Canberra on Wednesday.

"Personally, however, I find it offensive that a private insurer would refuse to cover the costs of that patient and hospital in such a tragic event.

"If someone thinks that a financial incentive will motivate doctors, nurses or anyone else in a hospital to prevent maternal death any more than they desire to do so now, then they have no understanding of medicine or the people in it."

[alonso]

Any holders here been following the spat the fund has had with the Calvary Group?
How do you see this playing out in terms of membership and possible flow-on effects?

[alonso]

In Reply To: alonso's post @ Jun 1 2015, 10:59 AM

Although I will add to that by saying there certainly looks to be a lot of competition in the health insurance business of late as the established funds and the newbies all vie to take bits of the same pie off each other.

[alonso]

In Reply To: cooderman's post @ Jun 1 2015, 10:40 AM

I just looked at the Westpac chart I've been using and I can see it falling below the WMA but not much indication that there could be a bounce. As you say, it's only likely to be a thin profit margin if it does bounce.
Don't know what its fundamentals are.

[cooderman]

MPL dropping towards low and what you would hope is support....plenty of sellers
it might be worth a risk if it bounces off that support..... hardly worth a trade unless you were buying 10k as it may only trade back up
to 2.23.
chart after half hour trade.