Health insurer nib will pass on cost savings to customers if the federal government's review of the $20 billion sector delivers major reforms and efficiencies.
"It's our objective to pass through cost savings to the consumer through pricing, lower prices than they otherwise would have been," managing director Mark Fitzgibbon said after nib reported a strong first-half result.
"Its going to take a lot of reforms, a lot of improved efficiencies."
Real health care spending is expected to grow in the order of GDP plus two per cent.
Around 12 million Australians have private healthcare insurance, and a large portion of the policyholders are over the age of 50.
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The major challenge is to get younger Australians taking up private healthcare insurance to help ease the burden of the nation's ageing population, Mr Fitzgibbon said.
"But we'll never see prices go backwards. As an economy, the demand for healthcare is so explosive," he added.
nib Monday booked a five per cent rise in net profit for the six months to December 31 from a year ago as the nation's fourth largest private health insurer by policies lured more members and increased prices.
nib, which has more than one million health insurance members in Australia and New Zealand, booked an interim net profit of $43.4 million. The result was slightly tarnished by lower net investment income due to weak equity market returns.
That compares with a net profit of $41.4 million for the same period a year earlier, which benefited by $5.4 million from the sale of its stake in Pacific Smiles Group.
nib's 1.8 per cent growth in Australian Residents Health Insurance policyholder numbers helped drive a 10.5 per cent rise in premium revenue to $781.3 million.
Australian Residents Health Insurance - the company's core business - booked a 38 per jump in underlying operating profit to $51.7 million in the first half of fiscal 2016.
ARHI accounts for almost 80 per cent of total group underlying operating profit, which was up 46 per cent to $66.4 million.
nib confirmed its annual guidance, forecasting that it will likely be at the upper end of its underlying operating profit range of $102 million to $114 million with statutory operating profit of $90 million to $100 million.
nib shares leapt 24 cents, or 7.3 per cent, to close at $3.52.
NIB POSTS HIGHER PROFIT
*Net profit jumped 5pct to $43.4m
*Revenue rose 13pct to $934.4m from $825.8m
*Dividend rose to 5.75 cents a share from 5.5 cents a share
