Insights

Medibank (ASX:MPL) share price up as customers get millions in support

Medibank is giving some of the money it’s saved during COVID-19 lockdowns back to its customers. We take a closer look
The post Medibank (ASX:MPL) share price up as customers get millions in support appeared first on The Motley Fool Australia. –

Shares in Medibank Private Ltd (ASX: MPL) recovered from a poor start this morning following news the company will be returning around $105 million to its customers.

At the time of writing, the Medibank share price is $3.16 – 0.48% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.67% right now.

Let’s take a look at today’s news from the healthcare and health insurance company.

Medibank’s COVID-19 support

Medibank has announced it will be returning $105 million in COVID-19 net claims savings. Around 2 million of its customers will be eligible for the give back.

Medibank customers with extras-only policies will receive up to $52, while those holding hospital and extras policies could get $175.

It will also be postponing premium increases for 6 months.

Additionally, ahm customer extra limits will be extended by a year as many customers couldn’t use their extras during COVID-19 lockdowns.

The give back will be funded through a partial release of the savings Medibank made when customers were forced to defer their claims because of COVID-19.

Australian Medibank and ahm customers who held policies between 1 July 2020 and 30 June 2021 are eligible for the support. Most customers will receive the financial support by the end of September.

The company has now handed out $300 million worth of COVID-19 support.

Medibank doesn’t expect COVID-19 to impact its operating earnings for the 2021 financial year.

Commentary from management

Medibank’s CEO David Koczkar said of the company’s financial support package:

We’ve been there for our customers to help them navigate through this challenging time, and this give back is just another example of how we are supporting our customers…

We said right from the start of the pandemic that we would not profit from COVID-19, and that we were committed to returning any COVID-19 savings back to our customers because it is the right thing to do. And today’s announcement shows that we have done what we said we would.

Medibank Private share price snapshot

Lately, the Medibank share price has been performing well on the ASX. It’s currently 4% higher than it was at the start of 2021. It has also gained 7% since this time last year.

The company has a market capitalisation of around $8.6 billion, with approximately 2.7 billion shares outstanding.

The post Medibank (ASX:MPL) share price up as customers get millions in support appeared first on The Motley Fool Australia.

Should you invest $1,000 in Medibank Private right now?

Before you consider Medibank Private, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Medibank Private wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 up 0.35%: SEEK upgraded, Afterpay lower

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!