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What is the difference between a 'for-profit' and 'not-for-profit' health fund?

With more than 35 private health funds now operating in Australia, it's no wonder the different business structures can get a bit confusing at times!

Essentially, a 'for-profit' health fund (such as Bupa, NIB and Medibank) aims to return a profit to their shareholders and/or owners, which may be another health fund or corporation. They are still required to maintain sufficient funds to operate the company and pay benefits to their members.

In comparison, a 'not-for-profit' health fund (like HIF) means that it's a mutual organisation, with all premiums paid into the fund being used to operate the business and cover benefits for members. 

HIF is a not-for-profit, here-for-you health fund.

By preserving our status as a registered open-access, not-for-profit member focused private health insurer, we qualify for exemption from income tax assessment under the Income Tax Assessment Act 1997 (Cth) (although we are subject to other forms of taxation). Unlike many Australian health funds, we don't have shareholders. Moreover, cash dividends are not paid directly to our fund members. Instead, we return any surpluses to our members in the form of lower premiums, increased rebates and new benefits and services. This is our way of rewarding our loyal members.

It's about our members, not profits.

Our priority is to help our members and their dependents lead healthy and happy lives. Simple as that. We do this by providing a choice of insurance covers for Hospital, Medical and Extras services. We also offer travel insurance cover, but ultimately we undertake all of these activities to do one thing – ensure we keep a tight lid on health insurance premiums.


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"Being a member of a not-for-profit health fund is important to me" 
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HIF Health Insurance

Nobody likes to think about themselves, or their loved ones, falling ill or needing healthcare treatment. But it happens. And when it does, it’s good to know you have options. With HIF Health Insurance, we prefer to let our policies speak for themselves. Simply click “Get a Quote” and choose the right private health insurance for you.

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