Following our communications in May and July regarding the future of RBHS and our commitment to keeping you informed, we are pleased to provide an update on the next stage of this process.
After careful consideration, the RBHS Board has agreed for RBHS members to transition to GMHBA, subject to regulatory approval and other conditions precedent. To support this, RBHS and GMHBA have now entered into a binding agreement to merge.
The Board believes that joining GMHBA, a values-aligned not-for-profit health insurer, represents the strongest long-term outcome for members and supports the continued delivery of high-quality, sustainable health cover.
Importantly, no action is required from you. Your cover continues unchanged and there will be no interruption to your membership.
Key Points for Members
- RBHS and GMHBA have entered into a binding agreement to merge, subject to regulatory approval and other conditions precedent.
- No action is required from you at this time.
- Your health cover continues without interruption.
- We currently anticipate the transition occurring in early 2027, subject to regulatory approvals.
- Your waiting periods, service history and Lifetime Health Cover status will be preserved.
- Your premium will not increase as a direct result of the merger and, pleasingly, GMHBA will be providing a 10% discount to transitioning memberships. Based on current arrangements, the discount is currently expected to apply for five years. GMHBA will notify you in advance if the expected discount period changes. Further information about the discount will be communicated prior to the transition date.
- In all material respects, your policy benefits and cover entitlements will remain the same or be improved under GMHBA.
- A small number of specific product benefits will be amended as part of the transition. Members affected by these amendments will receive full details before the transition takes effect.
Why Are We Merging?
RBHS currently relies on external service providers to support the delivery of member services. The existing Management Services Agreement with Peoplecare, our service provider, has reached its scheduled end and will not be renewed.
In considering the future of RBHS, the Board has carefully assessed the available options to ensure members continue to receive stable, high-quality and sustainable health cover into the future. Throughout this process, the Board’s primary focus has been to protect members’ interests and ensure continuity of cover.
Regulatory Approval Process
The proposed merger cannot proceed until the required regulatory approvals have been obtained.
As part of this process, the Australian Prudential Regulation Authority will independently assess that the proposed merger is in the interests of members of both funds. Other regulatory bodies may also be involved as required.
The signing of the binding agreement to merge is the formal step that commences these approval processes.
Who is GMHBA?
GMHBA is an Australian not-for-profit health insurance and care company. As a mutual organisation, it has no shareholders, meaning profits are reinvested to improve services, enhance member value and support community health initiatives.
Since 1934, GMHBA has been caring for Australian communities and has grown to become Australia’s leading regionally based not-for-profit private health insurer. Today it supports more than 337,000 members across Australia through the GMHBA and Frank Health Insurance brands. In addition to health insurance, GMHBA provides a range of healthcare services including dental, eye care, GP, physiotherapy and chronic condition support services in regional Victoria, helping members access broader health and wellbeing support.
What This Means for Your Cover
We want to reassure you that your health insurance entitlements will continue to be protected throughout the transition.
What Stays the Same
- There will be no break in cover as a result of the merger.
- Your waiting periods, service history and benefit entitlements will transfer with you.
- Any Lifetime Health Cover loading will be preserved.
- Your RBHS employment benefit, where applicable, will continue unchanged.
Your cover will transfer to GMHBA with your entitlements protected. For most members, your cover will remain the same or improve under GMHBA. As with any merger of this kind, there are some differences between the two Fund's products. We will provide details specific to your policy, including any relevant amendments that apply, well before the transition takes effect.
What May Change
Following the merger, you will become a GMHBA member and some administrative aspects of your membership will change over time. These may include:
- A new member number and membership card
- Access to member services through GMHBA’s online member area and mobile app.
- Updated customer service contact details.
- Your product continuing to be known as RBHS while becoming part of the broader GMHBA group.
- Access to additional benefits and services available through GMHBA, including the 10% discount as per the above.
We will provide detailed information and advance notice of any changes before they occur.
What Happens Next?
Subject to regulatory approvals, we continue to anticipate the transfer occurring in early 2027.
Privacy and Personal Information
As part of the merger with GMHBA, your personal information and sensitive health information – including your membership details, policy history and health claim records – will transfer to GMHBA on the transition date.
This is necessary to ensure your cover and entitlements continue without interruption and that GMHBA can administer your policy from the transition date. This transfer occurs as part of the merger process authorised under the Private Health Insurance (Prudential Supervision) Act 2015 and is in accordance with the Privacy Act 1988 as a purpose directly related to the administration of your health insurance cover.
GMHBA will hold and protect your personal information in accordance with the Privacy Act 1988 (Cth) and the Australian Privacy Principles. You can access GMHBA's privacy policy at GMHBA Privacy Policy.
You continue to have the right to access and correct your personal information after the transition date by updating it via the GMHBA app or contacting GMHBA at service@gmhba.com.au.
If you do not wish your membership to continue with GMHBA
If you do not wish your membership to continue with GMHBA, you may terminate your RBHS membership before the transition date.
If you choose to terminate your membership prior to the transition date, you will need to arrange alternative health insurance before your cover termination date to avoid any gap in cover and potential Lifetime Health Cover or Medicare Levy Surcharge implications.
Sharing of information before the transition date
To ensure your cover transfers accurately and without interruption, membership information may need to be shared with GMHBA before the transition date for system preparation and testing activities associated with the transfer.
When identifiable information is required, it will be shared under a formal data protection agreement that:
- restricts GMHBA's use of that information to transition preparation activities only
- prohibits any other use of the information; and
- requires destruction of any pre-transition data if the merger does not proceed.
If you do not wish your identifiable information to be shared with GMHBA before the transition date, please notify us at info@myrbhs.com.au by 30 September 2026.
Please note that this does not affect the transfer of your information to GMHBA on the transition date itself as part of the legal merger process.
We understand that members may have questions and we are committed to communicating openly and transparently throughout this process. Our primary responsibility remains to you, our members, and that commitment will not change.
As part of that commitment, we will:
- Provide members with a progress update at least every two months throughout the regulatory approval and transition process, as well as at key milestones.
- Hold a Members' Information Meeting before the transition takes place, where we will provide further information about the proposed merger and answer members' questions.
Further details, including how to submit questions in advance, will be provided in due course. Importantly, you do not need to do anything at this time.
You can also access some additional information below under our FAQs.
RBHS has made arrangements for our service provider to continue supporting member services throughout the transition period. Members can continue to access and use their cover in the usual way while the transition process is underway.
Thank you for your continued trust and support. As promised, we will continue to keep you informed as this process progresses.
Frequently Asked Questions (FAQs)
RBHS currently relies on outsourced arrangements to deliver private health insurance services. The existing Management Services Agreement with Peoplecare, our service provider, has reached its scheduled end and will not be renewed.
Following a detailed review of all available options, RBHS and GMHBA have formally agreed to merge. This merger supports a stronger, more sustainable fund that is better positioned to support your health cover needs for the long term.
The decision has not been taken lightly. Both the RBHS and GMHBA Boards have sought independent advice and have concluded proceeding with the merger is the best long-term outcome for their respective members.
RBHS and GMHBA are joining together. The transferring fund’s (RBHS) policies, members, assets and obligations transfer to GMHBA on the effective date. You will become a member of GMHBA.
Both RBHS and GMHBA are not-for-profit private health insurers that exist solely to provide member benefits. That will not change.
GMHBA is an Australian not-for-profit health insurance and care company. As a mutual organisation, GMHBA has no shareholders and profits are reinvested into improving services, member value, and community health programs.
GMHBA has been caring for the community since 1934, and with more than 90 years’ experience, they have become Australia’s leading regionally based not-for-profit private health insurer and support more than 337,000 members across Australia through the GMHBA and Frank Health Insurance brands. Through their personalised approach and exceptional customer service, GMHBA put the health and wellbeing of their members and communities first.
Beyond health insurance, GMHBA also provides dental, eye care, GP, physiotherapy and chronic condition support services in regional Victoria, helping members access broader health and wellbeing support.
RBHS entered into the Heads of Agreement in March and has now signed a binding agreement to merge, subject to regulatory approval.
Under the Constitution of RBHS, the Board of RBHS has the power to approve the merger of its business and assets.
The decision was made by the elected Boards of RBHS and GMHBA, who have a legal duty to act in their respective Company’s best interests.
Having said that we intend to organise a meeting with the members to introduce them to GMHBA and to discuss the merger and answer any questions.
A merger of health funds under section 33 of the Private Health Insurance (Prudential Supervision) Act 2015 is subject to a multi-regulator framework. Each body plays a distinct role, and the merger cannot proceed until the relevant approvals are obtained and notifications made. This includes the Australian Prudential Regulation Authority (APRA), the Australian Competition and Consumer Commission (ACCC), the Department of Health, Disability and Ageing (DOHAC) (as required) and indirectly the Private Health Insurance Ombudsman.
Nothing changes at this time:
- RBHS remains your health insurer
- Your policy, benefits, premiums, and entitlements stay the same
- You can continue to use your cover as normal
- Claims and member services continue without interruption
- You do not need to take any action
The process is subject to a comprehensive regulatory approval process, including review by the Australian Prudential Regulation Authority (APRA).
We anticipate the merger will take effect in early 2027, subject to APRA’s and other approvals. We will confirm the effective date and write to you again once APRA has granted approval.
Nothing changes for you until the transition date. Your current policy with RBHS continues exactly as it is in the meantime.
The Boards of both funds have signed a binding agreement to merge and will be lodging an application with APRA for approval.
However, the merger is subject to APRA’s formal assessment and approval. It cannot take effect until APRA grants that approval and the other approvals are obtained. We will communicate with you once the approval is received to inform you of next steps.
If the sale does not complete - whether due to regulatory approvals not being granted or otherwise - we will:
- Keep you fully informed about any future changes, well in advance
- Work to ensure any alternative solution maintains continuity, quality and support for members
A condition precedent is a requirement that must be satisfied before the merger can legally proceed. They are items that both funds must complete before the merger can take effect – if any one of them is not met, the merger cannot go ahead.
Until all conditions precedent are met, both funds continue to operate independently and your cover remains unchanged.
Your core cover entitlements will, on the whole be maintained or improved as part of the transition.
We will send you full details of your new product before the merger takes effect so that you can see exactly what is covered.
A small number of extras benefits that work differently under GMHBA’s product range will be amended. We will provide full details of amendments that apply to your policy well before the transition takes place.
No premium increase will be applied as a direct result of the merger. In fact, GMHBA will provide a 10% discount to transitioning memberships. Based on current arrangements, the discount is expected to apply for five years. GMHBA will notify you in advance if the expected discount period changes. Further details will be provided closer to transition date.
Like all health insurers, GMHBA participates in the annual premium approval process. Any premium changes that apply from 1 April 2027 will follow that process in the normal way and will be communicated to you separately and in advance.
Accordingly, any future premium changes would be subject to the standard industry approval process and not arise as a direct result of the merger.
Yes. For those members who are eligible to receive a health benefit funded by the RBA, which helps cover the cost of insurance. This benefit is currently expected to remain unchanged.
GMHBA has agreements with the same hospitals covered under your current policy, so your hospital access remains the same.
Only a small number of hospital-related arrangements have been identified as changing, specifically some ‘no-gap’ Medical Purchaser Provider Agreements with selected medical practitioners. This means that for some doctors and services, there may be an out of pocket cost where previously there was none.
For your extras cover – while GMHBA operates a number of health practices across regional Victoria including dental, optical, physiotherapy and other services, you will continue to be able to use your own choice of provider.
No. You will continue to have access to all providers and medical services.
GMHBA operates a range of healthcare services such as dental clinics, eye care centres and GP clinics in regional Victoria which will be available to RBHS members after the merger, however these are additional options, with members free to continue to choose their own local provider.
No. Your waiting period history is fully protected.
You will not need to re-serve any waiting periods you have already completed. If you are currently part-way through a waiting period, this will continue from where it is — you will not need to start again. In some cases, waiting periods may also be improved under the GMHBA product, meaning your remaining waiting period could be reduced.
Your Lifetime Health Cover (LHC) loading status is fully preserved. If you currently carry an LHC loading, that loading will transfer across exactly as it is. It will not increase or reset as a result of this merger.
GMHBA extras limits run on a calendar year, with annual limits for extras typically resetting on 1 January. Any changes to your product will be communicated to you in detail prior to the transition date.
No. All current rules around student dependents and dependents with a disability will be preserved as a part of the merger. Further information will be provided prior to the transition date.
As part of the merger, you will become a fund member of GMHBA. As a fund member you will continue to have full rights in relation to your health cover, including access to complaints processes and all protections under the Private Health Insurance Act 2007.
However, there is one important difference in how GMHBA is governed that you should be aware of.
RBHS health fund members are also corporate members of Reserve Bank Health Society Limited and as such have certain rights, including the right to directly elect the Elected Directors. GMHBA uses a different governance model. As a fund member, you can vote to elect company members at the annual meeting of fund members. Those company members then elect the Board of Directors on behalf of fund members.
This means you will no longer have a direct vote in director elections. However, you will continue to have a role in the governance of the fund through the election of company members.
Yes.
Before any change occurs, you will:
- Receive clear and timely information
- Be advised of the proposed effective date
- Have opportunities to ask questions at a Meeting of Members and understand your options
No. There is no action required from you at this time.
Yes – you can transfer to any registered private health insurer at any time. This right is not affected by the merger.
No. You do not need to take any action. Your cover will transfer automatically to GMHBA on the effective date. To help ensure you receive important updates about your membership, please check that your email address, mobile number, postal address and communication preferences are up to date before the transition.
If you'd like to receive information from GMHBA as quickly as possible following the transition, we encourage you to choose email as your preferred communication channel. Members who prefer to receive communications by post can continue to do so.
Before the transition date, RBHS will provide you with information about your product, key transition dates, claims downtime over the transition period and other important details.
On your first day as a GMHBA member, you'll also receive an SMS with your new member number so you can register for the online member area and download the GMHBA app to access your digital member card as soon as possible.
RBHS is committed to keeping members informed throughout the process. We will provide updates as more information becomes available and at least every 2 months.
You can contact us at info@myrbhs.com.au
We will also be scheduling a Meeting of Members to provide additional information and answer any questions. We will send you further information on this in due course.