One of the nation’s largest health insurers is offering its customers cash back as part of a $266 million boost to its Covid-19 financial support package.
Medibank customers who have had a policy with the insurer within the last seven months will enjoy a two-month pause to increases to their premiums, while those without an active policy can apply for cash.
The move means there will be about $59m in further savings for customers, with the insurer claiming its premium hike – which was due for April – would be its lowest in 22 years.
It follows calls from Health Minister Mark Butler for Australian health funds to hold off on their rate increases, especially with Tuesday’s interest rate increase of 25 basis points.
“While public health measures implemented during Covid-19 have eased, claims still remain below expected levels, which is why we’re continuing to return savings to our customers,” said Medibank group executive Milosh Milisavljevic.
The premium rate increase deferral applies to all Medibank and AHM customers who hold an active resident hospital and/or extras policy or an active overseas visitors and workers policy.
Meanwhile, customers whose policy is no longer active but who have held an active resident policy between 1 July 2022 and 31 March 2023 will be eligible for a cash back in lieu of the premium increase deferral.
Since the start of the pandemic, Medibank has returned about $1 billion to customers through similar Covid refund schemes.
Meanwhile, rival health fund Bupa will hold off its April increase until July, and NIB will do the same until September.