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Large health insurance companies give customers up to $ 620 cash back in pandemic profit share

Written by Javed Iqbal

Australians with private health insurance is about to receive $ 1.6 billion in cashback amounts from five of the country’s largest providers.

The funds are under pressure to pass on pandemic profitsafter they rose last year with elective surgery claims postponements.

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The health insurance providers Bupa, Medibank, CUA, HBF and AIA have all committed to sharing their pandemic profits with eligible policyholders.

It will look like cashback payments from some providers, as well as deferred premium increases and support for difficulties.

The profits that these companies made due to deferred claims will be rolled out this year, with some already distributing the profits to the members.

A 2020 report from the Australia Institute argued that restrictions on non-urgent elective surgery during the pandemic would likely result in “unexpected” profits for health insurance companies.

Former head of the private health insurance administration The council called Shaun Gath on the government at the time to step in and “monitor the repayment of any profits to customers to ensure that it actually happens and is done fairly”.

Here’s everything you need to know.

BUPA

BUPA will offer a total of $ 155 million in cashbacks.

Am I eligible?

You are entitled to a refund if you were a member of the Fund for at least 90 days between 1 July 2021 and 30 June 2022.

Even if you have since terminated your membership, you are still entitled to the payment if you were a member during this period.

You must also be a policyholder domiciled in Australia to be eligible.

Foreign visitors and students and members with only ambulance coverage will not be eligible.

How much and when do I get paid?

The fund uses the bank details entered in your account and will start paying in the amount from October 2022.

The cashback figure depends on the policy you have with the fund.

  • Extra only: Between $ 16 and $ 44 per person. police
  • Hospital only: Between $ 42 and $ 118 per police
  • Hospital and accessories: Between $ 58 and $ 162 per person. police,

BUPA will try to contact customers and say: “You will receive a message from us describing how much you will get back.

“We are committed to giving back all the money we have saved from unused claims or other consequences of COVID-19.”

Reimbursement amounts will vary from state to state, depending on how severely the area was hit by the pandemic.

“We recognize that customers in NSW and VIC, due to strict government locks, were more significantly affected by their ability to use their policies.”

Medibank

Medibank achieved an annual net profit of $ 441.2 million last year to June 30.

In February, its health insurance surplus rose 10.3 percent to $ 280.9 million amid a 3.8 percent increase in premium revenue to $ 3.5 billion.

It is unclear exactly how much of the profits will be shared with policyholders, but the fund’s cashback payments are included in a $ 682 million support package.

Medibank’s pandemic profit share will be offered in the form of an extended break in premium increases, in addition to some cashback amounts to eligible customers.

The prize break has now been extended from October to November.

Am I eligible?

You are entitled to a refund if you were a resident of a permanent hospital or extra policy between 1 January 2022 and 30 June 2022.

You are not eligible if your policy was only ambulance coverage, overseas visitor coverage, overseas worker coverage and overseas student health coverage.

How much and when do I get paid?

The fund simply states that the cashback payment will be made using the bank details in your account sometime this year.

This cashback amount is based on the type of coverage you have had and the period you were an active member of that policy.

  • Only extra: Approximately $ 28 pr. politics
  • Hospital only: Approximately $ 90 pr. police
  • Hospital and accessories: Approximately $ 123 per. politics

If Medibank does not have your bank details, you will receive the free days with coverage of a similar value.

HBF and CUA

The insurance company HBF bought CUA Health last year, so the companies’ obligations are largely the same.

HBF estimated $ 42 million in surplus funds from deferred claims to be returned to members.

HBF has already paid 410,000 eligible policyholders who had a policy between 25 March 2020 and 30 June 2020.

It only paid extra policy for $ 20, and family policies with hospitals and extras up to $ 140.

“HBF was the first and only major fund to completely cancel its premium increase in 2020, saving our members $ 37 million,” said HBF CEO John Van Der Wielen at the time.

CUA similarly identified a profit of 3.7 million and paid well over 41,100 policyholders in December last year.

“When we acquired CUA Health last month, one of the first orders was to prioritize the payment of COVID-19 savings to our new members,” Van Der Wielen said.

The CUA announced in March 2021 that it would make cashback payments to eligible members who had insurance policies in 2020 between March 25 and June 30.

Payments ranged correspondingly between $ 20 and $ 150 per. policy, depending on coverage.

AIA

AIA Health Insurance offered reimbursement of extra premiums paid in August last year, minus any claims made between January 1 and December 31, 2021.

Members who were part of the AIA Vitality program could also receive a refund of between 50 percent and 100 percent of their memberships.

AIA claimed at the time that total reimbursement amounts would be calculated in early 2022 and returned directly to members.

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Javed Iqbal

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