Medibank has reported higher health insurance membership and increased health services earnings for the six months to Dec. 31, 2025, ahead of an average 5.10% premium increase taking effect on April 1, 2026. The insurer presented the result as showing growth in both its core insurance portfolio and its health services arm, while pointing to ongoing cost pressures across the health system. The announcements come after the federal government approved an industry-wide average private health premium rise of 4.41% from April, the largest increase in almost a decade.
Medibank reported net resident policyholder growth of 38,300, or 1.9%, over the half-year period. Growth in the resident portfolio over the past six months was more than double the increase recorded in the same period a year earlier, according to the company. Non-resident policy units rose by a further 1,500, or 0.4%. Medibank said it is continuing to target the student market in its non-resident business. The group said its health services division, Medibank Health, now contributes about 13% of group earnings.
The company highlighted the role of its two insurance brands, Medibank and ahm, in policyholder gains and noted higher use of its health and wellbeing services by customers. “We’ve built two distinctive health insurance brands in Medibank and ahm that are growing by delivering more of what our customers and patients want, and customer engagement is strong,” Medibank said in its results announcement. Medibank declared an interim fully franked dividend of 8.3 cents per share, up 6.4% on the prior corresponding period.
The group continued to expand its Amplar Health business, which it describes as a multidisciplinary primary care network operating in-clinic, in-home, and virtual settings. During the half, Medibank completed the acquisition of Better Medical, a group of 61 GP and medical clinics, for more than $163 million, taking its total GP and medical clinic network to 168 locations nationally. Amplar Health delivered 2.3 million patient interactions over the period, Medibank reported. The group said the proportion of Medibank resident policyholders engaging with its health and wellbeing services rose to 55%. It also cited an estimated 100,000 hospital bed days “saved” through homecare programs and the expansion of its Amplar Health Online Doctor service to all Medibank customers.
Against a backdrop of ongoing cost-of-living pressure, Medibank highlighted initiatives aimed at reducing members’ out-of-pocket expenses and supporting early intervention. The insurer said its Members’ Choice provider networks helped customers avoid nearly $105 million in out-of-pocket costs during the half, while customers claimed $22.9 million in Live Better rewards. The group’s no gap network delivered a reported $3.3 million in savings for customers, with utilisation of that network by Medibank customers up 90% year on year. “We’ve worked to deliver greater everyday health value to our 4.3 million customers,” Medibank said. On the prevention side, the company reported 227,000 enrolments in everyday prevention programs and 18,000 clinician-guided prevention services delivered, ranging from health checks to structured clinical programs. Membership of the Live Better rewards program grew to 1 million, according to the announcement.
The financial results follow Medibank’s announcement that its health insurance premiums will increase by an average of 5.10% on April 1, 2026. The increase, approved by the federal Health Minister, applies to both Medibank and ahm policies. Medibank said the change equates to an average rise of $2.14 per week for a single policy and $4.46 per week for a family policy. The increase sits above the industry-wide approved average of 4.41%, and within a range of outcomes across major brands. Nib is implementing average rises of around 5.47% on many products, while Bupa’s approved increase is 4.8%. Members Health Fund Alliance, representing not‑for‑profit and member-owned funds, has indicated an average change of 3.62%.
Medibank chief customer officer Milosh Milisavljevic said the insurer had sought to balance higher claims costs with affordability concerns. “We know any increase in premiums matters to our customers, especially when cost of living pressures are continuing to be felt in the community. Every dollar for our customers counts and this premium increase could add pressure to household budgets. For customers that need support, we are ready to help. Our private hospital partners have faced significant challenges in recent years, and we’ve continued to support them, including partnering with them on the health transition. As a result, our hospital payout ratio remains above the industry average,” Milisavljevic said.
Milisavljevic added: “To help keep costs down, we’ve also removed around $125 million in our own costs over the last 8 1/2 years, which has kept our expense ratio among the lowest in the industry. Every dollar saved helps us keep premium increases down. We’re also very focused on making sure our customers get real value from their cover with us. One of the pain points for customers is out-of-pocket costs, which we have been addressing through our growing Members’ Choice and no gap networks. For customers, they can get 100% back on up to 2 dental check-ups at a Members’ Choice dentist, or they can save $2,100 on average in out-of-pocket costs on knee replacement surgery through our no gap network.”
The 2026 premium round marks the largest approved average increase in the sector since 2017, following several years in which government scrutiny and pandemic-related conditions kept headline adjustments below inflation. Market analysis suggests that a 4% to 5% rise typically adds more than $100 a year to an average hospital-only policy, with larger dollar impacts for combined hospital and extras cover. Medibank noted that its 5.10% figure is an overall average and that individual outcomes will differ by state or territory, product type, excess level, and claims experience. Customers of both Medibank and ahm are due to receive notifications of their new premiums by email or post from early March.
The insurer said customers experiencing financial strain can contact the business to discuss hardship support or to review whether an alternative level of cover may better suit their needs. It also directed policyholders to its websites and call centres for more information on product-level pricing and benefits. For insurance professionals, Medibank’s half-year update and premium decision highlight two key dynamics in the 2026 pricing cycle: sustained claims inflation across hospital and medical services and growing use of out-of-hospital, digitally enabled models of care.
