Approximately $3.7 million in surplus deferred claims provisions will be paid to just over 41,100 CUA Health policyholders via direct debit or cheque during December 2021.
Payments will range from $22 to $150 per policy depending on the cover held (e.g. single/couple/family, hospital and/or extras), with the most common being $75 (single with hospital and extras cover) and $150 (family with hospital and extras cover).
HBF Chief Executive Officer John Van Der Wielen said: “When we acquired CUA Health last month, one of the first orders of business was to prioritise the payment of COVID-19 savings for our new members.
“Early on in the pandemic we made a strong commitment that HBF would not profit from COVID-19 and it was important for us to extend this ethos to our CUA Health members.
“This is the right thing to do and aligns with our purpose of being there for all our members in the moments that matter, which is the value of being with HBF.”
In March 2021, HBF was Australia’s first major health insurer to announce the return of COVID-19 savings to members. HBF was also the first and only major fund to fully cancel its 2020 premium increase at the outset of the pandemic.
The methodology used to determine the quantum and eligibility for the return of CUA Health’s surplus deferred claims liability has been consistent with HBF’s approach. As a result, payments will be made to eligible current and former CUA Health members who held a Hospital and/or Extras policy during 25 March 2020 and 30 June 2020, when non-urgent hospital and ancillary treatments were not accessible as the Federal Government’s COVID-19 control measures were in place.
HBF acquired CUA Health on 1 October 2021, further embedding HBF as Australia’s fifth largest private health insurer with over 1 million members and a market share of approximately 8%.