Medibank Private customers will get another cash payment as part of a pandemic ‘give back’

Medibank Private will return another $160m to customers as part of its pandemic give back program, with policy holders to receive between $50 and $255 each.

Medibank customers will be eligible for cash payments.

Medibank Private will return another $160m to customers as part of its pandemic give back program, with policy holders to receive between $50 and $255 each.

The give back program is based on a commitment from Medibank that it would not profit from the pandemic while customers’ capacity to use their private health cover was curtailed.

The company has now returned $1.62bn to customers under the program, which will finish this financial year.

Customers will be paid different amounts based on their level of cover, however need to have a valid policy at the end of June this year to be eligible.

“Eligible Medibank customers will receive at least $50 through the cash back, with some receiving up to $255, depending on the level of cover they have,’’ Medibank said on Thursday.

“On average it will be around $50 for eligible extras only policies and around $130 for eligible hospital and extras policies.

Medibank chief customer officer Milosh Milisavljevic said Medibank made a commitment at the start of 2020 that it would not profit from the pandemic.

“While Covid restrictions have eased over the past couple of years, we are still seeing slightly lower than expected claims levels, which is why we are announcing we’ll be returning more money to our customers,’’ he said.

“This will bring the total amount of support Medibank has provided to customers to $1.62bn through our Covid-19 give back program, which is the largest give back of any Australian health insurer to date.

“We know that many household budgets are under a lot of pressure with rising cost of living, and we hope this extra money provides some relief for our customers.”

Customers holding an active hospital or extras policy on June 30 this year will be eligible for the cash back.

Payments will be made by the end of September, and customers do not need to do anything to claim the money, Medibank said.

Medibank said on Thursday it had increased its first half underlying profit by 13.8 per cent to $298.7m.

On the operational front the company grew its net resident policyholder numbers by 18,500, or 0.9 per cent, and its non-resident policyholders by 38,900, or 12.6 per cent.

Medibank said cost of living pressures had resulted in a modest increase in the number of customers across the industry lapsing and switching funds. The company expects to grow in line with the market during the second half.

Medibank will pay a 7.8c per share dividend, up 8.3 per cent, on March 26.