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Medibank not for sale

18 October 2011 - 2:06pm

A government hearing has revealed today that there are no plans to sell Medibank Private.

The Finance and Public Administration Senate estimates hearing has been told that while there are no plans of a sale, there will be a review of Medibank's corporate strategies, performance and governance arrangements.

"We are certainly not doing any work on a potential sale of Medibank, it is not government policy and we are not doing any work on it," deputy secretary of the Finance Department Jan Mason said in response to a question from the opposition.

The government-owned private health insurance company is the largest health fund in Australia, with nearly four million members.

The Senate hearing was prompted after the health insurer recorded the strongest financial performance in its history for the 2010/11 financial year.

The acquisition of four health services - Health Services Australia, Total Health, Carepoint and McKesson Asia-Pacific - helped to boost Medibank's total revenue to more than $5 billion.

Independent MP Rob Oakeshott had previously claimed that Medibank delivered no new products to the market that are not already provided elsewhere.

"We are now delivering a broader range of services to a greater number of customers across public health, corporate occupational health and private health sectors," managing director George Savvides said last month.