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Medibank giving customers cash back in $266 million package

The health insurer is giving customers cash back as part of a new support package.

Medibank cash back
Medibank will return $266 million to current and former customers under a new support package. (Source: Getty)

Medibank is returning $266 million to current and former customers, as part of the health insurer’s COVID financial support package.

Aussies who have a current policy with Medibank or ahm will receive a two-month pause to increases to their premiums, while former customers who had a policy in the past seven months will be eligible for cash back in lieu.

Medibank announced it would increase premiums by an average of 2.96 per cent, which is slightly higher than the average increase of 2.9 per cent across health funds.

“With inflation and interest rates continuing to rise, we know that many Australian household budgets are under pressure, which is why we have worked hard to deliver our lowest premium increase in 22 years,” Medibank group executive, customer portfolios, Milosh Milisavljevic said.

“We’ve also deferred the date of our premium increase from 1 April, 2023 to 1 June, 2023, saving our customers $59 million.”

Rival health funds Bupa and nib have also announced pauses to their premium increases. Bupa will defer its 3.39 per cent increase to July, while nib will postpone its 2.72 per cent increase to September.

The increases mean Aussie families will pay an extra $134 per year on average for health insurance, while singles will pay an extra $60 per year.

Who is eligible for cash back?

You will be eligible for cash back if you had a Medibank or ahm resident hospital and/or extras policy between July 1, 2022 and March 31, 2023.

The amount you receive will depend on the type of cover you had (including whether it was hospital and extras, or extras only) and your location. It is paid in lieu of the 2.96 per cent premium increase deferral.

If Medibank or ahm have your bank details on file, the funds will be transferred into this account.

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