Medibank has announced it will return $160 million to its customers as part of its ongoing commitment to ensuring it does not profit from the pandemic. This initiative comes as many Australians continue to face economic uncertainty, with household budgets strained by rising expenses.
According to Medibank, the refunds will be automatically distributed to eligible policyholders later this year. By extending its give-back program, the insurer aims to provide financial relief while reinforcing its promise to fairly redistribute savings accumulated due to lower-than-expected claims during the pandemic.
Continued Commitment to Returning Savings
The health insurer has been issuing refunds to policyholders since the start of the pandemic, when claims dropped significantly due to COVID-19 restrictions. With this latest round, Medibank’s total customer give-back program will reach $1.62 billion.
Eligible customers who had an active hospital or extras policy as of June 30 will receive an automatic cash back payment, expected to be deposited into their bank accounts by September 2024. Refund amounts will vary, ranging from $50 for extras-only policies to $255 for those with hospital and extras coverage, with an average of $130 for combined policies.
Financial Impact and Customer Support
Medibank Chief Customer Officer Milosh Milisavljevic emphasized the importance of providing financial relief during economic uncertainty.
“We know many household budgets are under pressure with rising cost of living, and we hope this extra money provides some relief for our customers,” he said.
The company stated that the refunds are sourced from permanent net claims savings linked to the pandemic, which allowed Medibank to reduce its COVID-19 reserve balance by $160 million (pre-tax). These payments will not affect the company’s operating profit for the fiscal year ending June 30, 2025.
Lower-Than-Expected Claims and Final Round of Refunds
Despite the easing of COVID-19 restrictions, claims have remained slightly lower than anticipated, according to Medibank.
“While COVID restrictions have eased over the past couple of years, we are still seeing slightly lower than expected claims levels, which is why we are announcing we’ll be returning more money to our customers,” Milisavljevic noted.
Medibank has indicated that this may be the final round of pandemic-related cash back payments, as remaining net claims savings are expected to be returned to customers by the end of the year.
Customers do not need to take any action to receive their payments, as Medibank will deposit the funds directly into their bank accounts and notify them accordingly.
