Medibank wins court case over 'misleading and deceptive' conduct

Medibank wins court case over 'misleading and deceptive' conduct | Insurance Business

Medibank wins court case over
Australia's largest private health insurer has won a Federal Court case in which a consumer watchdog accused it of misleading and unconscionable conduct.

The case was filed by the Australian Competition and Consumer Commission (ACCC) in June last year, after Medibank stopped covering out-of-pocket expenses on some medical tests, including x-rays, CT scans, and blood tests.

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The competition watchdog accused Medibank of misleading consumers when it failed to inform them of the change, implemented on Sept. 1, 2014, in an effort to prevent them from changing insurers and damaging the insurer's brand and reputation ahead of its debut in the Australian Securities Exchange, ABC and Australian Financial Review reported.

The insurer denied the charges, saying its documentation clearly stated that it paid benefits “towards” the cost of medical services and hospital charges, and that it had never told members that it would cover all expenses related with in-hospital diagnostic services, ABC said.

Federal Court judge David O'Callaghan dismissed the case.

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