The LUAA Health Plan has been arranged by the La Trobe University Alumni Association in conjunction with health insurance adviser, Health Link Consultants.  The health cover is provided by Australia's largest not-for-profit health fund, the Hospitals Contribution Fund - HCF. HCF is dedicated to delivering the best quality healthcare to its members and provides private health insurance cover for a full range of health benefits including private hospital and ancillary services.  For your added protection, HCF operates on a national basis. HCF in summary: Australia’s largest not-for-profit Health Fund. Established over 75+ years. 3rd largest Fund in Australia (out of 37 in all). Covers more than1.1 million Australians. Financially strong with reserves exceeding Government statutory requirements. No Hospital excess for accidents. No Hospital excess for day procedures. Excess payments are capped every year HCF has the best No Gap medical coverage of any health fund*. * PHIO State of the Funds 2011 Report

Not-For-Profit vs. For-Profit – A brief explanation All Health Funds need to make a profit or surplus.  They need to do this to build their reserves and provide security for members by preparing for higher claiming levels in the future.  For profit Health Funds also need to pay dividends to shareholders. Not-for-profit Health Funds tend to be mutual organisations – usually owned by the members and run by members through an elected Board of Directors.  These Funds do make surpluses when required – but don’t have shareholders to pay and don’t pay tax. Not-for-profit Funds generally aim to generate enough income to cover the cost of members’ claims, run the fund and meet the financial requirements of the Private Health Insurance Administration Council (PHIAC), which is the regulator for all health funds in Australia.  So instead of paying the profit to shareholders as dividends, it’s kept by the Fund for the benefit of members. Shareholder based ‘for profit’ health funds will usually distribute profit in the form of dividends to shareholders.  To pay dividends to their shareholders, they must make profits above and beyond the cost of claims, running their business and the statutory requirements of the regulator.  For-profit companies also have the additional cost of paying income tax on their profits.  The recommended insurer for the La Trobe Alumni Health Plan is HCF – Australia’s largest mutual, not-for-profit health insurer.