Medibank and one of its brands, ahm, will give back $125 million in COVID-19 savings to their members, bringing their total COVID financial support package to $1.15 billion.
In a statement, Medibank confirmed that eligible Medibank and ahm members will receive funds through a “cash back,” which will be deposited into their bank account. The funds will range up to $91 for extras only policies and up to $402 for hospital and extras policies. On average, the cashback will be $19 for extras only policies and around $78 for hospital and extras policies.
Medibank group executive Milosh Milisavljevic said the cash back is part of the insurer’s commitment to not profit from COVID-19.
“We have now given back $1.15 billion to customers through our COVID-19 give back program since the start of the pandemic,” Milisavljevic said. “This year alone, we have returned $408 million to customers through cash backs, premium increase deferrals, and rolling over extras limits. At a time when people are really feeling the pinch of cost-of-living pressures, we know this extra cash in their pocket will be welcomed.”
Eligible customers will receive their cash automatically by October 2023.
Resident Medibank and ahm customers with an active hospital and/or extras policy at any time during the period between January 1, 2023, and June 30, 2023, will be eligible for the cash back program. A proportional cash back will be applied to customers who joined or whose policies have lapsed since January 1, 2023.
The cash back program’s funds come from additional COVID-19 permanent net claims savings. Therefore, they will not impact Medibank’s operating earnings for the six months ending June 30, 2023.
Medibank continues to monitor claims activity following COVID-19 restrictions easing in 2022. It will return any permanent net claims savings due to COVID-19 as part of its commitment to not profit from the pandemic.
