Medibank Private (MPL) Corporate presentation summary

Australia's healthcare system and private insurance

• Healthcare spending was 9.9% of GDP vs the OECD average of 9.2%; Australia ranked in the Commonwealth Fund's top three for health outcomes in 2021.

• Medicare enrolled 23.4m Australians; 54.9% of the population had some form of private health insurance.

• Private health insurance generated ~$31b in premiums and paid ~$26b in benefits; funds covered 40% of hospital episodes in 2023-24, and ~67% of elective surgeries occurred in the private sector.

• The industry had 30 insurers; the five largest held over 82.5% of resident policies, and 26.5% market share was recorded as at 30 June 2025.

Insurance framework and incentives

• Community rating requires the same product to be available at the same price, subject to permitted adjustments; insurers cannot set premiums based on health status, age or claims history.

• Insurers apply annually for premium increases; the 2026 average premium increase was 5.1%. Hospital products are standardised into basic, bronze, silver and gold tiers.

• Risk equalisation pools claims costs for people aged 55+ and high-cost claims; insurers may be net payors or beneficiaries, while the industry-wide net outcome is $0.

• Government incentives include the Medicare Levy Surcharge, Lifetime Health Cover loading, income-tested premium rebates and youth discounts; the additional rebate subsidy for people aged 65+ is due to end 1 April 2027.

Strategy and growth priorities

• Strategic priorities span leading customer experiences, strengthening the business, differentiating insurance, expanding health services and transforming health, supported by risk culture and technology modernisation.

• Growth opportunities include prevention, primary and virtual care, personalised care, community care and acute home health, alongside broader services for insurance customers.

• FY26 focus measures include resident PHI market share, non-resident customer growth, Medibank Health earnings, Amplar Health interactions, customer health engagement and productivity improvements.

• The health transition priorities are prevention over reactive treatment, community-based care over default hospital settings, connected digital care and personalised services.