Corporate governance and fund rules

Learn more about our corporate background

• Introduction
• Brief background
• Our structure
• Fund rules
• Corporate governance
• HBF Councillors
• Our board members 

Introduction

Unlike our publicly listed counterparts, whose control may become subject to a corporate takeover, possibly hostile, our constitutional and legislative base is distinctive, assuring continuity for the benefit of our members. Our Board operates under strict regulations and guidelines and follows rigorous and professional practices normally associated with listed entities. They constantly review corporate governance practices and structures to ensure HBF adapts to the changing regulatory, political and market environment while retaining our core focus of providing affordable services for Western Australians. In recent times, external factors such as rising costs, new technology and the ageing population, have placed great pressure on the health insurance industry. As a result, we have had to examine alternative sources of income to cover the growing costs associated with the health fund and keep the pressure off health insurance premiums.

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A brief background

The success of this Western Australian icon lies in the unique combination of the vision of our founding members and our ability to adapt to a modern, commercial environment. HBF was established in 1941 as the Metropolitan Hospital Benefit Fund, with the core purpose of providing affordable health services to as many Western Australians as possible. Our current structure and operations can be directly traced back to our origins as a key provider of social services prior to the introduction of universal government health cover (i.e Medicare). It was established to provide a pool of funds from contributors (or members) to cover the provision of health services at Perth's three metropolitan hospitals. Without any government cover at the time for health services, the organisation was critical in ensuring that Western Australians were able to access quality health services. The organisation was developed not to generate profits, but to ensure the ongoing provision of affordable health services to as many people as possible. Since its inception, our Fund has grown from strength to strength, quickly becoming the leading provider of health insurance in WA. Our strong tradition of community support continues today, both in terms of legislative platform and strategic intent. Use our new interactive tool to find out more about the history of HBF. 

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Our structure

HBF is a company limited by guarantee, governed by the Corporations Act 2001.  The legislation requires that all surplus funds or profits are re-invested in the organisation and its services and are not paid or distributed to members as dividends. The legislation echoes our commitment to returning benefits to its contributors and underlies our special status as an organisation.

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Fund rules

All registered health funds are required to have Fund Rules under the Private Health Insurance Act of 2007.  These Fund Rules set out the general principles and rules of membership under which each fund conducts its business.  When you take out private health insurance with HBF, you become a member of our Fund and agree to our Fund Rules. 

View our Fund Rules

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Corporate governance

Corporate governance is the process by which HBF and those in control are held to account.  Our Board Members and Councillors are integral in this process. The Board has overall responsibility for corporate governance at HBF, including the responsibility to determine, review and approve policy, practices, management performance and financial operations. Board members are elected by Councillors, based on their mix of skills, corporate government experience, suitability and integrity and are subject to strict conflict of interest rules. The Councillors are the formal custodians of HBF and oversee the Board. Councillors are elected by serving Councillors and Registered Contributors who have been HBF members for more than 10 years. They also must be suitably qualified in line with our Constitution. In addition to being obliged to comply with the Associations Incorporation Act, and our subsidiaries being bound by the Corporations Act 2001 (Cwth), different operations within the group are regulated by the Private Health Insurance Administration Council, Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Office of Fair Trading. 

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HBF Councillors

HBF Councillors are the “formal members” of the incorporated association of HBF.  The responsibilities and functions of the Council are:

• The election of suitable persons to the Board and if necessary, the removal of unsuitable persons from the Board;
• Ensuring Board members are remunerated at a level appropriate to an organisation of the size, style and complexity of HBF in the context of HBF wishing to attract quality Board members;
• To act as guardians of the Constitution of HBF, which can only be amended by a special resolution passed at a General Meeting of Councillors.

In September 2009, elections were held for two positions on the HBF Council. All HBF long term members who had applied as registered policy holders were eligible to vote. We are pleased to announce that Jeffery John Leach and David Lees Brown have been elected as Elected Councillors of HBF for a term of 3 years under the terms of our Constitution. We congratulate them both on their election and thank all participants in the election process.

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Our board

Our board members bring a wealth of corporate and financial knowledge to the organisation. 
They are:

• AM (Tony) Iannello(Chairman)
• Rob Bransby (Managing Director)
• Prof John Wood
• Valerie Davies
• Prof D’arcy Holman
• Peter Wallace
• Barry John Honey
• Mary Woodford
• Anne Templeman-Jones

For more details on our board members, view their profile overviews (pdf) 

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