Medibank returns further $207 million in COVID-19 savings to customers

Private health insurer Medibank will return a further $207 million in COVID-19 permanent net claims savings to eligible customers as part of its COVID-19 support package and giveback program.

As part of the program, eligible customers will automatically receive funds through a “cashback” into their bank account by late May 2023. The cashback will be up to $151 for extras-only policies and up to $667 for hospital and extras policies. On average, the cashback will be $30 for extras-only policies and around $129 for hospital and extras policies.

The cash giveback is being funded from Medibank’s additional COVID-19 permanent net claims savings and will not impact the insurer’s operating earnings for the six months ending December 31, 2022.

“Our commitment has been to ensure that we would not profit from the pandemic and to return any COVID-19 permanent net claims savings to our customers because it is the right thing to do,” said Milosh Milisavljevic, group executive of customer portfolios at Medibank.

“Our COVID-19 support package and giveback program have now reached a record $950 million. While nearly all public health measures implemented during COVID-19 have eased and claims are recovering, they remain below normal levels. This is why we’re returning those savings to our customers,” he added. “We know a lot of people are doing it tough at the moment with the rising cost-of-living expenses, so we hope that this provides our customers with some financial relief.”

The latest giveback brings Medibank’s COVID-19 support package to a record $950 million, the largest financial giveback from any major Australian health insurance fund.