Media Releases
TUH Administrator
Dated: 6 June 2003
PHIAC TAKES ADMINISTRATIVE DECISION ON TEACHERS’ HEALTH FUND
The Private Health Insurance Administration Council (PHIAC) announced
today it has appointed an administrator to Queensland Teachers’ Union
Health Fund Limited (TUH), a registered private health insurer, based
in Queensland.
The decision follows the appointment of an inspector to the fund by PHIAC
in February after a number of financial and administrative irregularities
were found to require further examination. The appointment of an administrator
is a precautionary step to ensure the fund’s long-term viability.
As well as appointing an administrator PHIAC has also announced some
additional conditions with which
TUH will be required to comply in order to maintain its health fund registration
under the National Health Act.
These conditions are concerned with issues of basic risk management,
accountability and corporate governance.
“It is unusual for PHIAC to take the action of appointing an administrator
to a fund which is in a strong financial position,” said the CEO
of PHIAC, Ms Gayle Ginnane.
“However TUH’s circumstances are unusual and PHIAC is concerned
that there are aspects of TUH’s affairs which require urgent attention
and management from an appropriately qualified and experienced commercial
professional” she said.
The Board of Teachers’ Union Health has been invited to work with
PHIAC to ensure that the statutory safeguards established by the Federal
Government to protect health insurance members, and the registration conditions
set by PHIAC to protect the members of TUH, are met.
This early intervention is being undertaken to protect the interests
of Teachers’ Union Health Fund members.
There will be no cessation of members receiving their benefits, and operations
are continuing as per normal.
“Teachers’ Union Health members can be confident that their
health fund memberships and all services they are insured for will be
honoured in full,’’ PHIAC CEO Gayle Ginnane said today.
“Similarly, TUH staff can be assured that their employment and all
benefits are guaranteed”.
The appointment of the Administrator and the imposition of conditions
on TUH will not impact on staff employed at the fund.
PHIAC will wait on a full report from the administrator before making
further comments on the matter.
About PHIAC:
The Private Health Insurance Administration Council (PHIAC)
is an independent Statutory Authority that regulates the private health
insurance industry.
For more information contact: Gayle Ginnane, Tel: (02)
6215 7999 or Mobile: 0419 285 313.
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