Published 20 Oct 2022
GMHBA to return an additional $41 million of COVID related savings via one month premium contribution.
GMHBA Limited has today announced it will be returning an additional $41 million in estimated claims savings from the COVID-19 pandemic to its GMHBA and Frank members by paying for one month’s policy cover for every active membership.
GMHBA CEO, David Greig said, “During the COVID-19 pandemic, health services were interrupted resulting in some people having delayed health care treatments. GMHBA set aside funds to pay for claims that had to be postponed as we expected our members would seek treatment in the future. However, we have found that not all claims that we planned for have been made and this has resulted in us generating further reserves.”
“GMHBA Limited has already returned $26 million to members through six month premium freezes in 2020 and 2022 and other support initiatives. We are now returning an additional $41 million to members through a one month contribution to their policy to be made in December. This means GMHBA will be paying for one month’s policy contribution for every active Frank and GMHBA policy.”
“As a not-for-profit health insurer, we are pleased to be able to make this significant return to our members. In terms of estimated value to members, the average monthly contribution is $160 for single policies and $360 for family policies.”
During the COVID-19 pandemic GMHBA offered GMHBA and Frank members a support package that included a range of measures including:
- Putting premium increases on hold for six months in 2020 and 2022.
- Providing telehealth benefits for a wide range of extras services to support continuity of care at home.
- Making additional premium relief available to eligible members experiencing financial hardship due to COVID-19.
- Waiving the minimum suspension period, so members who were eligible for a policy suspension could reactivate their cover at any time they need.
- Partnering with Kieser to bring physiotherapy and related strength training direct to our eligible extras members with no out of pocket expenses.
- Introducing a deferred elective surgery support program for affected members with complimentary physiotherapy and psychology consultations.
Mr Greig said, “In addition, we will also be returning $4 million via a one-off payment to former and suspended GMHBA and Frank policy holders who held an active policy for more than 3 months during the period 1 April 2020 to 10 December 2022. These former and suspended policy holders will receive a one off payment.”
GMHBA Limited will be communicating with former and suspended members in early 2023 and active Frank and GMHBA members in November 2022.
It is anticipated that the one month premium contribution will be made on 10 December 2022. As most members pay their premiums by direct debit, this will result in their payments not coming out prior to Christmas. For those policies which are paid in advance, the paid to date will be moved forward one month.
To qualify for this premium contribution payment, members need to hold an active policy with GMHBA and Frank on 30 November 2022 and remain active at the time of payment on 10 December 2022.