Contribution rate changes

As a not-for-profit and member-focussed health fund, the ongoing affordability of health insurance for our members is always at the forefront of our planning. Following the Minister for Health’s approval of this year’s contribution rate review, our average increase over the last five years (5.3%) continues to sit below that of the industry average (5.7%), demonstrating our commitment to keeping any increases as low as possible for members and ensuring that we are highly competitive in all states and territories and against all funds.

Healthcare costs continue to rise across the industry, with claims benefits paid by Teachers Health Fund increasing by $53.3 million or 12% to $495.1 million in the last financial year, reflecting higher costs for services and growth in claims. Claims costs remain the single biggest expense for Teachers Health, driven by the increased utilisation of services, higher costs for services and prostheses and our growing and ageing membership base. It is vital that we hold sufficient capital to pay these claims, both now and in the future and this is inevitably reflected in our premium increases.

Our members can be assured that Teachers Health is focused on operating the Fund in a responsible and sustainable manner, whilst providing enhanced products and services to our members. In 2017 we are investing an additional $1.5 million in benefit improvement for members, bringing total benefit improvements over the last five years to $5.2 million.

Teachers Health operates at low but financially sustainable margins, guaranteeing that our members obtain value for their premiums whilst ensuring that we can continue to sustain and strengthen the business. As a not-for-profit organisation, any surplus generated by Teachers Health is reinvested in the business for the benefit of its members, enabling the Fund to improve benefits and keep premiums as low as financially sustainable. In the last financial year, Teachers Health Fund returned 91 cents in Hospital, Medical and Extras benefits to members for every dollar of contributions received.

With members at the heart of everything we do, we continually look for opportunities to improve efficiencies. Our administrative expenses are one of the lowest in the industry, representing just 6.7% of contribution income for the last financial year, well below the industry average of 8.6%.

Our commitment to members and focus on member satisfaction is reflected in our industry-leading member retention rate of 97%. This commitment has also been highlighted in a survey by Roy Morgan Research which ranked our members as the most satisfied among the 16 largest private health insurers. We not only achieved the highest overall level of satisfaction (83.6%), but also has the highest level of ‘very satisfied’ members. To find out more about the results, and how other funds compared, visit

These results reaffirm our position as a fund which is focused on people and not profits. We are dedicated to our members and are honoured that more than 300,000 people in the education community have chosen us as their preferred health insurance provider.

Want to know more?

The contribution rate changes were approved by the Federal Government on 10 February 2017. The changes will be communicated to members in March 2017 and will take effect in early April 2017.

Read more in our FAQs 

Think you’ve found a cheaper rate?

If you’re shopping around, it’s important to compare apples with apples and consider the services you’re covered for, not just price. Don’t forget that we offer a free online comparison service, providing you with a personalised side-by-side comparison of the cost and benefits of products. Click here to request a comparison.