Medibank (ASX:MPL) today announced its plan to distribute an additional $125m to its customers as part of the company’s comprehensive COVID-19 support package and give-back program. This new allocation brings the total amount of support provided to customers since the beginning of the pandemic to an impressive $1.15bn.
Under the “cash-back” scheme, Medibank and ahm customers will receive direct deposits into their bank accounts. The amount will vary depending on the policy, ranging up to $91 for extras-only policies and up to $402 for hospital and extras policies. On average, customers can expect to receive $19 for extras-only policies and approximately $78 for hospital and extras policies.
Milosh Milisavljevic, Medibank Group Executive, expressed the company’s commitment to supporting its customers during these challenging times, stating, “We have now given back $1.15bn to customers through our COVID-19 give-back program since the start of the pandemic. This year alone, we have returned $408m 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.”
Medibank’s dedication to not profiting from COVID-19 was reaffirmed by Milisavljevic, who emphasised that the company remains committed to fulfilling its promise made at the onset of the pandemic.
The cash distribution to customers is scheduled to take place by October 2023, with no action required from the customers themselves. To be eligible for the cash back, Medibank and ahm customers must have held an active hospital and/or extras policy at any time between 1 January 2023 and 30 June 2023. Customers who joined or whose policies lapsed since 1 January 2023 will receive a proportional cash back.
It is important to note that the additional funds for this cash give-back program are sourced from COVID-19 permanent net claims savings. This allocation will not impact Medibank’s operating earnings for the six months ending on 30 June 2023.
Medibank maintains its commitment to closely monitoring claims activity following the easing of COVID-19 restrictions in 2022. The company pledges to return any permanent net claims savings resulting from the pandemic, as part of its ongoing dedication to ensuring that profits are not derived from this crisis.