Medibank, one of Australia’s leading health insurance providers, is set to issue refunds totalling $228 million to its customers by the end of this month, under its COVID-19 give-back initiative. This return of funds is part of the company’s commitment, announced in 2020, not to profit from the pandemic.
Affected customers will receive at least $50, with some eligible to receive refunds as high as $375. On average, individuals with extras-only policies can expect to get around $55, while those with both hospital and extras policies may receive approximately $190. This marks the largest distribution of funds among health insurance providers in Australia, with Medibank indicating that its policyholders have benefitted more per policy compared to others.
In total, Medibank has returned approximately $1.71 billion to its policyholders over the last five years through various means, including cash back, postponing premium rises, and offering extra support. The recent refund initiative aims to provide relief to customers, particularly as many continue to navigate financially challenging circumstances. Milosh Milisavljevic, Medibank’s Chief Customer Officer, expressed hope that this cash return would deliver a positive impact for their clients.
Around four million customers in Australia will automatically receive the refund directly into their bank accounts without the need for any action on their part. However, eligibility is limited to those who held an active hospital and/or extras policy as of June 30 this year.
In recent years, Medibank has steadily increased its customer reimbursements, with $443 million returned in 2022, $408 million in 2023, and $305 million in 2024. The latest payment adjustment from $160 million to $228 million reflects Medibank’s ongoing commitment to its customers beyond the pandemic period. This initiative concludes the company’s COVID-19 support package, aimed at easing pressures during a challenging time.