Medibank has announced it will return another $160 million to customers as part of its pandemic give-back program, aiming to alleviate financial pressure on households affected by the rising cost of living. This initiative aligns with Medibank's commitment not to profit from the pandemic, particularly as customer claims have significantly decreased due to restrictions imposed during COVID-19.
Eligible customers with an active hospital or extras policy as of June 30 will receive cash back automatically deposited to their bank accounts by September 2024. According to Medibank, individual cash returns will vary, with amounts ranging from $50 for extras-only policies to as much as $255 for those with hospital and extras coverage. On average, customers can expect about $50 for extras-only policies and around $130 for combined hospital and extras policies.
Milosh Milisavljevic, Chief Customer Officer of Medibank, emphasized the importance of providing relief during these challenging economic times. "We know many household budgets are under pressure with rising cost of living, and we hope this extra money provides some relief for our customers," he stated.
The latest round of cash back payments builds on the substantial financial support Medibank has already provided since the onset of the pandemic. The insurer has returned $1.62 billion to customers as part of its program, which began as claims were significantly impacted by COVID-19 restrictions. Previous yearly returns included $443 million in 2022, $408 million in 2023, and $305 million earlier this year.
This give-back has been funded through permanent net claims savings associated with COVID-19, which has allowed Medibank to reduce its COVID-19 reserve balance by $160 million (pre-tax). Importantly, this financial return will not impact Medibank's operating profit for the fiscal year ending June 30, 2025, reinforcing the company's assurance to its customers.
Despite the easing of COVID-19 restrictions over the past few years, Milisavljevic noted, "While COVID restrictions have eased over the past couple of years, we are still seeing slightly lower than expected claims levels, which is why we are announcing we'll be returning more money to our customers." This reflects Medibank's commitment to transparency and responsible management during this unprecedented era.
Medibank's cash back program is expected to conclude this year; any remaining net claims savings will be returned to customers. The initiative not only exemplifies Medibank's ethical stance during the pandemic but also highlights its responsiveness to the changing economic circumstances faced by its clientele.
Overall, Medibank's continued commitment to returning funds to customers reinforces its dedication to supporting Australians during challenging financial times. With substantial cash returns and the promise of additional refunds, the insurer aims to provide necessary support to households grappling with the consequences of the pandemic and rising expenses.
Medibank customers can anticipate receiving their expected payments without any required actions on their part, as the organization intends to contact customers directly with details concerning their cash back. This proactive approach ensures all customers can access their funds easily, reflecting Medibank's customer-first philosophy.
With this latest round of cash back payments, Medibank not only seeks to fulfill its promise of not profiting from the pandemic but also to aid its customers during these challenging economic conditions.