I think it would be very difficult to remove an existing member...

I think it would be very difficult to remove an existing member unless it was proven they were fraudulent in their initial application. Legal people would be all over it. One would guess they were originally healthy and profitable members and since have unfortunately been struck with a high cost illness. Tend to think it is a percentage game and the 3% is a factored cost. Maybe if the member was to have a regular health check by the fund to qualify for continued membership, but that would go down like a lead balloon. I have looked @ MPL as an investment but doesn't stack up on forward PE ratios. Also of concern is they are competing with some efficient not for profit health funds. To name just a few QLD Country, Teachers Fund and ADF health fund, all of which serve their members more competitively than MPL.