Health insurance offer is a first

Andrew Mathieson
A GEELONG business is believed to be launching the world’s first online pre-paid health insurance.
Not-for-profit insurer GMHBA is set to target Generation Y customers with online payments made on the internet via PayPal.
The entry-level package that includes hospitals and extras will cost $9.90 per week for a six-month commitment.
Customers can pay fortnightly and monthly but GMHBA executive manager Jonathan Crabtree said it would cost more.
Mr Crabtree said the concept was inspired from “observing behaviour of his kids”.
The popularity of eBay, which owns the PayPal payment system on the internet, fuelled the idea.
“I have a 20-year-old son who is studying accounting and he uses PayPal,” Mr Crabtree said.
“He doesn’t have a credit card, he’s heard all the stories how you get trapped on credit cards with the high interest rates.”
GMHBA launched a new website to target the under-30s – a demographic that insurance had been “put in the too hard basket”, Mr Crabtree said.
People earning over $70,000, who would gain $700 in the Medicare levy, would be tempted to join the health fund, he said.
“They can buy this product and it will almost be like it’s free.”
The pre-paid Bronze Singles Policy Package covers customers for dental, optical, chiropractic, physiotherapy, ambulance and cover as a private patient in a public hospital.
The new pre-paid service has created a new www.PrepaidHealthInsurance.com.au website from the GMHBA home page.
Mr Crabtree said PayPal Australia had told him insurance has never been sold online before.
“Doing all of the research I have, I certainly have never come across a website that is like this,” he said.
“I’m reasonably confident it would be a world first because health funds around the world are rather conservative organisations.”