Rail, transport and energy health fund, rt health, has today announced a planned merger with HCF.
The merger with Australia’s leading not-for-profit mutual health fund is subject to approval by the Australian Prudential Regulation Authority. rt health was founded in 1889.
Simone Tregeagle, CEO of rt health, said the merger with HCF enables the fund to grow and better support its members.
“The merger with HCF is an exciting step for us that presents significant opportunities and benefits for our members. Like us, HCF has an unflinching commitment to putting members at the heart of everything it does and respects and understands the significant value that not-for-profit mutuals provide for members.
“By choosing to merge, we protect our brand, heritage and ensure members continue to receive the same dedicated and personalised support, services and products they have come to know and love,” said Ms Tregeagle.
The two organisations said the merger will deliver a range of benefits to members, including more competitive future pricing, greater clinical coverage and access to dental and optical networks, and preserving member value and voting rights.
According to Sheena Jack, CEO of HCF, “We are proud to merge with rt health, who has built a reputation over more than 100 years for its exceptional service and health cover for the rail, transport and energy industries.
“To be able to play a role in preserving rt health’s venerable history, valuable member relationships and industry connections, while shoring up its continued role in its communities, is a demonstration of how we believe we can help smaller funds with future challenges.
“The not-for-profit health fund sector plays a critical role in continuing to ensure health cover options are available for all Australians, no matter your circumstances; it puts downward pressure on premiums and margins and supports the preservation of product value.
“We believe that as an industry, we need to work together to ensure the preservation of capital in mutual structures, for the benefit of all our members.”
“Without a strong and thriving not-for-profit sector, motivated by maximising value for members and policyholders – rather than shareholders – Australian consumers would be significantly disadvantaged. Diversity of structure is an important form of competition in every industry,” added Ms Jack.