Medibank has announced an increase in its give-back commitment from $215 million to $305 million as part of its COVID-19 support package for Medibank and ahm customers. This brings the total support provided to customers since the pandemic began to a record $1.46 billion.
The give-back initiative, part of Medibank’s pledge not to profit from the pandemic, is the largest of any health insurer in Australia to date.
For Medibank Customers:
Eligible Medibank customers will receive an additional $35 million in cash back, supplementing the $200 million announced in February. Payments will be made by the end of September 2024. Customers will receive a minimum of $100 per policy, with some receiving up to $360 depending on their level of cover. On average, the cash back will be around $100 for extras-only policies and around $185 for combined hospital and extras policies. Eligibility is for resident Medibank customers holding a hospital and/or extras policy as of June 30, 2024.
For ahm Customers:
Eligible ahm customers will receive an estimated $55 million in cash back in October 2024, with each customer receiving $100 per policy. This is in addition to the rollover of most extras limits, valued at up to $15 million, announced earlier this year. Eligibility is for resident ahm customers holding a hospital and/or extras policy as of September 30, 2024.
Medibank Chief Customer Officer Milosh Milisavljevic stated, “We made a commitment at the start of COVID that we would not profit from the pandemic, and we’ve continued to stick by that promise. COVID hospitalisations and other impacts continue to contribute to claims being lower than expected, prompting us to increase our give-back commitment to $305 million. We hope this will provide households with some cost-of-living relief.”
Further information:
- Medibank Customers: Must hold a hospital and/or extras policy as of June 30, 2024. Payments will be made by the end of September 2024.
- ahm Customers: Must hold a hospital and/or extras policy as of September 30, 2024. Payments will be made by the end of October 2024.
Customers do not need to take any action to receive the cash back. For most, the money will be deposited into the bank account nominated by the policyholder. Customers are encouraged to ensure their bank account details are up to date to receive their payment promptly.
This give-back is funded from COVID-19 permanent net claims savings from the current financial year and will not affect Medibank’s Group operating profit for the 12 months ending June 30, 2024.
This announcement has been authorized for release by the Chief Executive Officer.
