GMHBA returns an additional $62 million of unspent COVID premiums to members

GMHBA Limited has announced it will return $62 million in COVID-19-related savings to GMHBA and Frank Health Insurance members by paying seven weeks of policy cover for every active membership.

This brings the total support provided to members during the pandemic to over $147 million.

The Geelong-based private health insurer is returning the funds to members, after disruptions to health services during the COVID-19 pandemic resulted in a drop in claims.

GMHBA CEO David Greig said he hoped the move would support members who were currently feeling the pinch of the cost-of-living pressures. In terms of estimated value to members, the average monthly contribution is $164 for single policies and $344 for family policies.

“We are proud to be Australia’s leading regional not-for-profit private health insurer, and we are genuine about caring for our members and their families,” he said.

“During the pandemic, we set aside funds to pay for claims that had to be postponed as we expected our members would seek treatment in the future. As not all treatments have occurred, we have generated increased reserve funds, and as a not-for-profit, we have been committed to returning to members any excess profits due to COVID.”

Since 2020, GMHBA has upheld a commitment to return any profits generated as a direct result of COVID to members.

GMHBA also returned COVID surplus to members last year by way of premium relief. Over the duration of the pandemic, GMHBA’s comprehensive support package encompassed a range of measures, including multiple deferred premium increases, premium waivers, provision of telehealth and no gap physiotherapy.

“Australians have experienced a really challenging few years, and we hope the impact of this decision will be a welcome reprieve,” Mr Greig said.

“GMHBA celebrates its 90th anniversary this year and we’ve taken the time to reflect on the impact we can have on our community and our members’ lives.

“GMHBA offers members access to a range of programs and educational resources that can support and enrich their lives, complementing their private health insurance. We are grateful for their continued support and are pleased to uphold the commitment we made during the pandemic.”

GMHBA Limited will be communicating with GMHBA and Frank Health Insurance members in coming weeks.

Members who pay monthly will have pay their premium payment waived in October and pay a reduced payment in November. For those policies which are paid in advance, the paid-to date will be moved forward seven weeks.