Australia's fifth largest health insurer, HBF, will be paying approximately $42 million in
surplus deferred claims provisions from COVID-19 to its members during July and August 2021.
HBF has finalised the amount and timing of payments after announcing on 3 March 2021 it was following through with
its commitment that it would not financially benefit from the COVID-19 pandemic, with an initial estimate that $40
million would be returned to members.
Following an in-depth analysis by HBF's Appointed Actuary of claims paid between 1 July 2020 to 31 March 2021 HBF has
concluded that it is unlikely that all of the deferred claims will still occur, resulting in a final calculation of
approximately $42 million in surplus funds available to be returned.
The $42 million payment is the remaining balance of a $94.3 million deferred claims provision that was detailed in
HBF's financial accounts for the 2020 financial year. The provision was an estimate of claims for elective surgery
procedures and ancillary services that members could not access while COVID-19 control measures were in place from
25 March 2020 to 30 June 2020 but were expected to be made at a later date.
Of the $94.3 million;
- Approximately $37m has been paid in claims
- Approximately $15m has been held over to cover claims still likely to be paid
- Approximately $42m surplus funds will be paid to members in July/ August.
HBF will make payments to eligible current and former members who held a Hospital and/or Extras policy during 25
March 2020 and 30 June 2020. Approximately 470,000 policies are eligible, with payments ranging from $20 per policy
(for a single with Extras only cover) up to $140 per policy (for a family with both Hospital and Extras cover).
HBF Chief Executive Officer John Van Der Wielen said:
"In responding to the COVID-19 pandemic we have remained true to our purpose of being there for our members in
the moments that matter.
"That is why HBF was the first and only major fund to fully cancel its 2020 premium increase, saving our members
$37 million, why we implemented hardship support measures for our members, and why we also pledged that members
would be the beneficiaries of any surplus funds arising from the COVID-19 pandemic.
"We have taken a fair and simple approach to the distribution of these surplus funds, enabling us to be in a
position to make these payments as quickly as possible, which will be by way of direct credit or cheque starting
in July."
Contact HBF: Shae Spark, HBF Corporate Affairs, shae.spark@hbf.com.au / 0403 240
558