GMHBA AnnuAL RepoRt 2010 - GMHBA Health Insurance

It is my pleasure to write this report for the
2009 – 2010 year. GMHBA Limited achieved a profit
of $5.850m for the year ended 30 June 2010 and total
accumulated funds now exceed $97.072m. The result
was generally satisfactory with a significant
contribution being obtained from investment income.
The benefit of increased premiums and significantly
expanded membership were largely offset by a
substantial increase in claims. While a better
underwriting result was anticipated the aim of being
a not-for-profit mutual was achieved in that we were
able to pay members’ claims as and when incurred
while not having to pay income tax and dividends.
GMHBA now has 91,468 members and provides health
insurance cover to 197,468 individuals. This represents
an increase in persons covered of 5.9% for the year.
When I became a director in September 1998 GMHBA
had 37,700 members and provided health insurance
cover to more than 75,000 individuals. The fund had a
turnover of approximately $50m and total
accumulated funds were less than $12m. Today
GMHBA has a turnover of more than $216m. GMHBA
is Australia’s eighth largest independent health fund
and its size and substantial net asset situation
positions it well to continue to provide for future
claims and other demands.
Growth in membership has consistently been in
excess of industry average and this is due to a number
of factors including the availability of attractive and
affordable health insurance products, the loyalty of our
members and the efforts of management and staff to
provide excellent service.
It needs to be recognised that GMHBA is part of a very
competitive industry which exists because of the
desire by a large number of Australians to play a role
in providing for their health care, the availability of
excellent public and private hospitals and the skills of
the medical and associated professions. Government
policy is also a critical element to the continued
success of the industry.
CHAiRMAn’s RepoRt
A significant development during the later part
of the financial year has been the expansion and
refurbishment of our head office in Geelong. This
project will see all of our head office staff operating
from one building with improved staff
accommodation.
The success of any organisation depends upon
leadership. Fortunately the Board provides that and
management, lead by Mark Valena and his executive
management team, demonstrate leadership in all they
do. GMHBA introduced new products during the year
and innovative ways were found to communicate with
members. I wish to express my thanks to all of the
directors, management and staff for their efforts and
contribution during the year.
Dr Heather Wellington resigned as a director in July
2010 after nearly twelve years on the Board. Heather’s
professional skills and knowledge of the health sector
significantly contributed to GMHBA’s deliberations and
progress during that period.
This is my final report as Chairman and I wish to thank
everybody for the opportunity to serve GMHBA. When
I first joined the Board the company’s aim was to
become one of Australia’s most respected and
innovative not-for-profit health insurers. GMHBA
continues to successfully operate as a not-for-profit
organisation and I believe that GMHBA is recognised
as being a progressive fund which makes a significant
contribution to the health insurance industry while
assisting members access to high quality health care.
I am very proud of the standing and ability of the
Board, management and staff. I thank them for their
efforts and wish to express confidence in them that
they will continue to work hard to provide appropriate
and affordable health insurance to our members
in the future.
I wish my successor well and I will follow GMHBA’s
progress with considerable interest in the
period ahead.
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