Medibank has released its financial results for the full year 2024, highlighting key developments in its health insurance business, customer growth, and strategic investments aimed at bolstering the Australian healthcare system.
The company reported the addition of over 14,000 resident policyholders during the fiscal year. Although this growth was modest, Medibank said it adhered to a strategic approach focused on sustainable long-term expansion in a competitive market.
The company also noted substantial growth in its non-resident business, with an increase of 69,000 policy units.
During the same period, Medibank's Members’ Choice Advantage network provided customers with an estimated $23 million in savings on out-of-pocket expenses. Additionally, customers redeemed more than $25 million in Live Better rewards, which included $8 million in premium savings.
The company expanded its no-gap program to 35 hospitals and introduced new silver and gold hospital cover options that aim to eliminate both excess and out-of-pocket costs for covered procedures.
As part of its continued response to the economic challenges posed by COVID-19, Medibank announced an additional $305 million in customer support, bringing the total amount of COVID-related support to $1.46 billion.
The company also implemented a $10 million reduction in operational costs and managed to keep premium increases below both inflation and wage growth rates.
Engagement with Medibank’s health and wellbeing services grew, with nearly half of its policyholders now participating. The Live Better rewards program expanded to 823,000 members.
Medibank also emphasised its commitment to preventive health measures, with approximately 132,000 enrolments in clinician-led programs and the launch of new digital prevention initiatives. The company further partnered with healthcare technology firm Amwell to scale these digital prevention programs.
Medibank extended its 24/7 nurse and mental health support lines to an additional 700,000 customers, and conducted approximately 29,000 virtual health checks. The Health Concierge program, designed to support customers during hospital admissions, was used by more than 25% of eligible policyholders.
The company continued to invest in primary care, virtual health, and homecare services, delivering over 4 million health interactions through its Amplar Health and Myhealth networks. Medibank’s homecare programs were credited with saving approximately 193,000 hospital bed days.
In line with its focus on providing value through innovative care models, Medibank opened the Orthopaedic Institute at Macquarie University Hospital in February and continued construction on Adeney Private Hospital in Melbourne. As part of its joint venture with Aurora, the company opened a second mental health hospital, with plans to launch a third in Brisbane later this year.
Customer experience improvements were also noted, with Medibank achieving its highest customer advocacy score in four years. The introduction of new digital tools and a trial program connecting customers with local representatives contributed to this improvement, with plans to roll out the program nationally.
For its shareholders, Medibank declared a fully franked final ordinary dividend of 9.4 cents per share, bringing the total fully franked dividend to 16.6 cents per share for the year.
Its group operating profit, excluding the impacts of COVID-19, increased by 7.9% to $699.8 million. This was driven by a 6.3% rise in health insurance operating profit and a 36.7% increase in profit from the Medibank Health segment, reflecting the company’s continued investment in Myhealth and other growth initiatives.
Medibank CEO David Koczkar (pictured) said the latest financial report highlights the company’s commitment to delivering more value to its customers amid rising living costs in the country.
“We are at the forefront of the health transition underway in Australia, working to change the way healthcare is delivered to give people more value, choice, and control and to keep our health system one of the best in the world,” he said.
