Throsby MP Stephen Jones is worried about what the Medibank Private privatisation will mean for Wollongong-based insurer ahm.
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Medibank Private acquired ahm in 2009 and subsequent restructuring led to several redundancies; 220 employees remain.
On Tuesday, Medibank head of external affairs Mikala Hehir said it was "business as usual" despite the looming sharemarket launch and there would be "no changes for our Wollongong people".
"There are no further changes planned at this stage," she said.
But Mr Jones said: "If you look at the history of privatisation what generally happens is that job losses follow."
The Community and Public Sector Union (CPSU) is also concerned there may be job cuts.
"This is a sad day for the thousands of hard-working staff who have made Medibank Private such a success," CPSU national secretary Nadine Flood said.
Mr Jones was also concerned the sell-off would lead to reduced competition and higher premiums but federal Finance Minister Mathias Cormann said Medibank Private would continue to operate in a competitive market of 34 private health funds.
Mum and dad investors can now pre-register for the public listing.
