The Medibank Private Ltd (ASX: MPL) share price is slightly in the green in early morning trade on Thursday.
Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $3.50. Shares are currently changing hands for $3.505, up 0.14%.
This comes after Australia's biggest health insurer updated the market on its ongoing COVID-19 support package and give-back program.
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What did the ASX 200 health insurer report?
In an announcement unlikely to have a direct material impact on the Medibank share price today, the health insurer announced it would return another $125 million to its customers.
Medibank has now provided $1.15 billion in support to its customers since the start of the global pandemic in early 2020.
The company said its customers would receive funds directly in their bank accounts. The new round of support will be up to $91 for extras-only policies and up to $402 for hospital and extras policies.
Medibank and ahm customers can expect those funds by October.
The cash return is funded from additional COVID-19 permanent net claims savings. Management said it would not impact the insurer's operating earnings for H1 2023. This is why I don't expect the new round of support funds will drag on the Medicare share price.
Commenting on the support package, group executive Milosh Milisavljevic said, "We have now given back $1.15 billion to customers through our COVID-19 give-back program since the start of the pandemic."
Milisavljevic continued:
This year alone we have returned $408 million to customers through cash backs, premium increase deferrals and rolling over extras limits. At a time when people are really feeling the pinch of cost-of-living pressures, we know this extra cash in their pocket will be welcomed.
We made a commitment at the start of the pandemic that we would not profit from COVID-19, and we've stuck by that promise.
Clients holding an active hospital and/or extras policy at any time during the first half of 2023 will be eligible for some portion of the cash-back package.
Medibank share price snapshot
The Medibank share price has been a strong performer in 2023, up 21% year to date.
