2024 Return of COVID-19 claims savings
We’ve announced that later this year, eligible Frank Health Insurance members will be getting further COVID-19 savings returned via a 7 weeks’ premium contribution. This payment will be made on behalf of eligible members and their regular payment/s will not be required during the specified period.
We’re working on getting these savings back to our members and will communicate further details in the coming weeks.
What are COVID-19 claims savings?
Frank set aside funds to pay for claims that had to be postponed during the COVID-19 pandemic, as we expected our members would seek treatment in the future. Not all claims that we planned for have been made. This has resulted in us generating additional savings – so we’re giving these claims savings back to our members.
Since 2020, Frank has returned more than $25 million to members through a range of support initiatives. The return of COVID-19 savings to members in 2024 will bring the total to more than $43 million.
When will eligible memberships receive their seven-week contribution payment in 2024?
COVID-19 claims savings will be returned to eligible active memberships from 30 September 2024. On this date, the paid-to date for eligible active policies will be moved forward 7 weeks.
Who is eligible for the return of COVID-19 claims savings in 2024?
To qualify for the upcoming return of COVID-19 claims savings, Frank members* need to hold an active private health insurance resident policy on 25 September 2024 and remain active on 30 September 2024.
* excludes Frank OVHC
Will suspended or former Frank members be eligible?
Members with suspended or terminated Frank policies who are not classified as active on 25 September 2024 and 30 September 2024 will not qualify for the 7-week contribution.
How is the 7-week contribution calculated?
The 7-week contribution will be calculated on 25 September 2024 and based on the weekly net premium amount for your cover. If there are any changes to your cover after this date, including to rebates, loadings or discounts applied to your membership, then your premium contribution may no longer be precisely 7 weeks.
What happens if my membership is in arrears?
If your policy is classified as active on 25 September 2024 and 30 September 2024, your paid-to date will still be moved forward 7 weeks (even if in arrears).
Why is Frank returning COVID-19 savings while still adjusting premiums each year?
The funds we're returning through the COVID-19 claims savings are specifically in relation to savings made throughout the period that the COVID-19 pandemic impacted access to healthcare treatments for members.
The reason why health insurance premiums are reviewed is because health care costs increase year-on-year. Health care costs are driven by a number of factors outside of the industry’s control, including:
- increased cost of health service delivery with things like new medical technologies and treatments
- an ageing population and people living longer
- growing rates of chronic conditions
As a health fund, we have a responsibility to address and react to these rising costs and prepare for the future, to ensure our members continue to get access to the care they require. While we do need to make changes to premiums, as a member-based health fund we continually try to put value back into our products for the benefit of all members.
How has Frank supported members during COVID-19?
Throughout the pandemic, Frank has supported members through the following initiatives:
- Freezing premium increases for six months in both 2020, 2022 and 2023
- Returning claims savings to active members in 2022 and to suspended and former members in 2023
- Providing telehealth benefits for a wide range of extras services to support continuity of care at home
- extras members with no out of pocket expenses (until 31 March 2021)
- Provided a deferred elective surgery support program for physiotherapy and psychology consultations available to affected members (until 30 September 2022)
- Waiving the minimum suspension period, so members who were eligible for a policy suspension could reactivate their cover at any time.
Get more information on our COVID-19 member support package
Who was eligible for the return of COVID-19 savings in 2022 and 2023?
Frank provided members who held active cover during the COVID-19 lockdown period with a one-off payment, as the ability to fully use their cover was impacted during this time.
COVID-19 claims savings were returned to eligible active memberships in December 2022 as a one-month contribution, and returned to eligible suspended and former memberships in May-June 2023 as a one-off payment.
To be eligible for a payment, members must have held an active resident policy for a minimum of 3 months between 1 April 2020 and 30 November 2022.
The amount received by those with suspended or former memberships was based on product holding and tenure during the eligibility period. This payment was made to the policy holder on behalf of all members covered on the policy.
When did active memberships receive their one-month contribution payment?
Frank covered the normal member payment for one months’ health insurance for eligible active resident policies.
The contribution was made on 10 December 2022 for eligible active members. On this date, the paid to date on most active resident private health insurance policies was moved forward one month. If a member had pre-paid a policy 12 months in advance, a one month refund was processed.
Members with suspended resident policies that weren't classified as active on 30 November 2022 didn't qualify for the one month contribution. Suspended members instead received a one-off payment in May-June 2023.
Please refer to your communications in your member area for details of your specific payment method, or reach out if you need more information.
You can view the Return of Surplus one month contribution received in the Premium payment history page in your member area.
What if I haven't received my payment?
If you are an eligible suspended or former member and haven’t received your payment – either via direct credit or cheque – after 31 July 2023, there may have been an issue with the account details we had on file for you. If you have had any issues receiving your payment, please get in touch.
