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February, 2024

Medibank hands back $215m to customers as its reports a 103.2% increase in net profit

Medibank, the Australian health insurance provider, has announced it will return a further $215 million to its customers as part of its Covid-19 support package. The funds will be distributed through a $200 million cash back program that’s expected to be deposited into customers’ bank accounts by the end of September 2024.

Customers will receive at least $50 through the cash back program, with some receiving up to $360, depending on their level of cover. On average, it will be around $55 for extras only policies and around $165 for hospital and extras policies. Resident Medibank customers holding an active hospital and/or extras policy on 30 June 2024 will be eligible for the cash back.

In addition to the cash back, Medibank customers will be given another year to use their unused extras limits, valued at up to $15 million. This marks the third consecutive year that ahm extras limits will be rolled over.

Medibank said the total amount of support it has provided to customers since the start of the pandemic now stands at a record $1.37 billion. This give back is being funded from Covid-19 permanent net claims savings and will not impact Medibank’s Group operating profit for the 12 months ending 30 June 2024.

“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,” Medibank Chief Customer Officer Milosh Milisavljevic said. “This will bring the total amount of support Medibank has provided to customers to $1.37 billion through our COVID-19 give back program, which is the largest give back of any Australian health insurer. At a time when household budgets are under pressure, we hope this extra cash in our customers’ pockets will be welcome news.”

The announcement came as the group reported its half-yearly results, highlighting an underlying net profit of $262.5m, up 16.5% on H1 FY23, and a whopping group NPAT of $343.2m, up 103.2%.

The group claimed an average services NPS of 46.4, up 5.5 points on last year, while ahm was up 6.2 points to 48.9. Over the period, Medibank paid out $3.1bn in total claims.