By : Ana Roberts -
Most people looking for a health insurance provider have many things in mind. Nevertheless, there are others that are more interested in what a given fund can do or what they do with the premiums paid by their members. For a long time, members own, or not-for-profit health funds were not very popular. However, with most people realizing their benefits, their popularity has been increasing considerably in recent years.
What is Members Own Health Fund?
By now you might be having an idea of what all members own health funds are all about. Ideally, these are institutions brought together and run based on a shared belief – to cover the health of their members. Whenever you come across a members own logo, you can be sure that the fund values the welfare of their members over making profits. These funds can be open to the public or a specific group of individuals.
Difference Between For-Profit and Members Own Funds
The main difference between members own insurance funds, and for-profit health funds are easy to understand. The former is in business to make a profit from the premiums paid by the members, while the latter does not. As such, this is often manifested in the way they offer their services.
Concerning the amounts of premiums paid, for-profits fund set their dividends in a way that they will be able to post profits at the end of their financial year. On the contrary, premiums paid to members own health funds are solely designed to cover the operational costs of the fund, and in case there is surplus revenue, these finds are re-invested into the fund to improve the quality of services offered to its members.
Key Objectives of Members Own Funds
- Return more to the members – Over the years, members own health funds collectively given a higher percentage of premiums paid to them back to their members. Thus, unlike the for-profit group, you are likely to get more benefits when you are insured with a members own fund.
- Quality customer service – Members own funds are designed to offer optimal customer service. This means that you expect to hear lower complain rates with members own funds. As a result, you are more likely to be satisfied here.
If you are looking for a health fund that is dedicated to benefiting you, a member own health fund could be what you have always needed. You only need to do your homework to ensure you get a fund you find appropriate based on your health needs.