Medibank customers will share in $215m in cash back payments

Medibank customers will receive another round of cash back payments this year while ahm members will also benefit. See what you’re in line for here.

Medibank customers will share in $215m worth of cash back payments related to the Covid pandemic, with policy holders eligible for amounts ranging up to about $165.

The minimum payment customers will receive will be $50. The health insurer said on average, extras-only policy holders will receive about $55 and those with hospital and extras will receive about $165.

In addition to this, ahm customers will be given another year to use their unused extras limits, valued at up to $15m in total.

The company’s chief customer officer Milosh Milisavljevic said the company had given a commitment in 2020 that it would not benefit from the Covid-19 pandemic, “and we’ve stuck by that promise’’.

Customers will be paid at least $50.

“While Covid restrictions have eased, claims have been lower than expected, which is why we are announcing a further $215m will be returned to customers,’’ Mr Milisavljevic said.

“This will bring the total amount of support Medibank has provided to customers to $1.37bn 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.”

Medibank customers will have the money paid into their bank accounts by the end of September.

“Customers do not need to do anything, we will contact them directly with details of their payment,’’ the company said.

“Resident Medibank customers holding an active hospital and/or extras policy on 30 June 2024 will be eligible for the cash back.’’

Medibank on Thursday also announced it had doubled its net profit to $343.2m and was rewarding shareholders with a solid increase in dividend payments.

The health insurer’s underlying net profit was 16.3 per cent higher at $262.5m on revenue of $4.02bn, up 3.3 per cent.

The company’s main health insurance division made an operating profit of $317m, up 4.3 per cent, while Medibank Health earnings were up 8.5 per cent at $26.7m.

Medibank grew its number of resident policyholders by 3400 in the first half.

“During the 6 months to 31 December 2023, the resident acquisition rate increased 30 basis points to 5.3 per cent, with the Medibank acquisition rate back in-line with pre-cybercrime levels and ahm improving in-line with increased aggregator sales,’’ Medibank said.

“The resident lapse rate increased by 20 basis points to 5.1 per cent, indicative of higher switching levels across the industry.’’

Medibank’s cybercrime costs, related to the 2022 hacking incident, fell 32.8 per cent to $17.6m.

The company expects the full year cost relating to cybercrime to be $30m-$35m however this doesn’t include any potential findings from regulatory investigations or litigation.

Medibank will pay a fully franked interim dividend of 7.2c per share, up 14.3 per cent.