Medibank enhances COVID-19 support: $215 million cash back to policyholders

Medibank enhances COVID-19 support: $215 million cash back to policyholders | Insurance Business Australia

Life & Health

Medibank enhances COVID-19 support: $215 million cash back to policyholders

Total assistance hits $1.37 billion

Life & Health

By
Roxanne Libatique

Medibank is set to enhance its COVID-19 assistance package by allocating an additional $215 million to its policyholders, increasing the aggregate support to a landmark $1.37 billion.

Under this new phase of support, Medibank will credit $200 million directly into the accounts of its customers by September 2024’s conclusion. The cashback amount will vary, from a baseline of $50 to as high as $360, influenced by the customer’s specific coverage type.

Typically, policyholders with only extras coverage will see an average of $55 returned, whereas those with both hospital and extras coverage could receive an average of $165.

Additionally, ahm policyholders will have the privilege of rolling over their unused extras benefits for an additional year, a feature valued at nearly $15 million. This extension for utilising extras benefits into the next year marks the third consecutive implementation.

Medibank chief customer officer Milosh Milisavljevic highlighted the company’s commitment not to capitalise on the pandemic, attributing the latest rebate to lower-than-expected claim submissions.

“We made a commitment in 2020 that we would not profit from COVID-19, and we’ve stuck by that promise. While COVID restrictions have eased, claims have been lower than expected, which is why we are announcing a further $215 million will be returned to customers,” he said. “At a time when household budgets are under pressure, we hope this extra cash in our customers’ pockets will be welcome news.”

The provision for this rebate is derived from the savings accrued from fewer COVID-19-related claims, ensuring it does not detract from Medibank’s projected operating profit for the fiscal year ending in June 2024.

Eligible members

Medibank said that all eligible customers, specifically those with an active hospital and/or extras policy as of June 30, 2024, will automatically benefit from the cash back without needing to take any action. The company intends to notify eligible customers directly regarding the specifics of their payment.

In regards to ahm policyholders, the rollover will accommodate all qualified extras from the 2023/2024 financial year into the subsequent year, excluding any unclaimed benefits from the 2022/2023 period. This rollover excludes optical services and does not cover services with rolling, lifetime limits, or for aids and appliances. Eligibility for this rollover necessitates having an extras cover by June 30, 2024.