The Medibank Private Ltd (ASX: MPL) share price is edging slightly higher today following the company's latest cash give back.
At the time of writing, the private health insurance giant's shares are fetching at $3.18, up 0.32%.
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Medibank returns COVID-19 savings
Investors are sending the Medibank shares into positive territory despite the S&P/ASX 200 Index (ASX: XJO) reversing its gains today.
For context, the ASX 200 Index is 0.07% lower to 6,519.2 points.
In its release, Medibank advised it is returning an additional $205 million in COVID-19 permanent net claims savings to customers. This brings the total amount of support provided by the business since the start of the pandemic to $682 million.
The cash back funds will be deposited into the customer's bank accounts at a confirmed date in September this year.
The financial package includes up to $145 for extras only policies and up to $620 for hospital and extras policies.
In addition, Medibank and Ahm will also defer the 2022 premium increase for a further month to 1 November 2022.
The premium increase deferral and cash give back are being funded from additional COVID-19 permanent net claims savings.
Medibank CEO, David Koczkar commented:
We said right from the start that we would not profit from COVID-19. We've stuck by that promise with our broader package now reaching a record $682 million.
The cash give back will be welcomed by our customers as they grapple with pressures on household budgets due to rising inflation, interest rates, fuel prices and home energy costs.
We've also put premium increases on hold for another month, taking the premium increase deferral to 7 months until 1 November 2022.
Our focus remains on delivering value for our customers and supporting them through the ongoing impacts of COVID-19.
Medibank share price summary
Over the last 12 months, the Medibank share price has travelled around 1% higher despite the recent market volatility.
In comparison, the benchmark ASX 200 index has fallen by 11% over the same time frame.
Based on today's price, Medibank presides a market capitalisation of roughly $8.54 billion.
