Medibank has revealed its plan to distribute an additional $160 million to customers this year as part of its give-back initiative. This cash-back program will offer payments ranging from $50 to $255, depending on the type of policy held by the customers. Eligible extras-only policyholders can expect around $50, while those with hospital and extras policies might receive about $130 on average.
Eligible customers will be contacted with details regarding their cash back, which will be automatically deposited into their bank accounts by the end of September. To qualify for this payment, Medibank customers must have been active holders of a hospital or extras policy as of June 30.
This initiative is being funded through permanent savings in net claims accumulated during the COVID-19 pandemic, resulting in a $160 million reduction in the reserve balance. Chief Customer Officer Milosh Milisavljevic stated that Medibank is committed to ensuring that it does not profit from the pandemic while customer claims were significantly impacted.
Despite the easing of COVID-19 restrictions over the last couple of years, claims have remained lower than expected. This has prompted Medibank to return more funds to customers. The intent behind this financial assistance is to ease pressures on household budgets amid rising living costs.
The financial support from Medibank has been substantial since the onset of the pandemic, with the insurer having returned a record $1.62 billion to its customers over this period. Previous years saw returns of $443 million in 2022, $408 million in 2023, and $305 million in 2024. This ongoing commitment reflects Medibank’s efforts to provide relief to its customers during challenging financial times.