Medibank to hand $105 million in claim savings back to customers in pandemic relief payments

One of the nation’s largest private health insurers will hand back millions of dollars to customers impacted by recent lockdowns.

Medibank will hand back millions of dollars in the form of claim savings to customers negatively impacted from recent shutdowns sparked by the coronavirus pandemic.

In a statement on Tuesday morning, the major private health insurer announced $105 million in claims savings would be returned to customers to relieve the cost of insurance premiums.

Up to two million customers will be eligible, including Medibank and ahm insurance holders who have hospital and extras cover.

The premium relief will be up to $54 for extras policies, and up to $175 for customers who hold a hospital and extras package.

Medibank says the average extras customer will get back $25, and hospital and extras policy holders will get roughly $60.

The return of funds will be applied automatically.

The major private health insurer announced $105 million in claims savings would be returned to customers to relieve the cost of insurance premiums. Picture: David Clark

The insurer has already committed $195 million in Covid-19 support, with the latest measure bringing the total relief to $300 million since the beginning of the pandemic.

Medibank chief executive David Koczkar pledged the insurer would not profit from Covid-19 and felt it was right to return the claim savings back to customers in the form of pandemic support.

“This latest phase of our package will be welcomed by our customers, some of who are still doing it incredibly tough as lockdowns continue in various locations across the country,” Mr Koczkar said.

“We will continue to assess known claims savings and continue to return any savings back to our customers.”

Medibank chief executive officer David Koczkar. Picture: Supplied

“We said right from the start of the pandemic that we would not profit from Covid-19, and that we were committed to returning any Covid-19 savings back to our customers because it is the right thing to do.”

Medibank said Covid-19 is not expected to impact operating earnings for the current financial year.

The claims give-back is funded through the partial release of Covid-19 deferred claims liability, as well as permanent claims savings which were recorded in December last year.

Customers still impacted by the pandemic are able to apply for policy suspensions or premium payment support.

Policy holders are still able to receive temporary benefits for hospital cover related to Covid-19. This includes treatments for heart, lung and kidney hospital admissions.