The ACCC has instituted proceedings in the Federal Court against Medibank Private (ASX:MPL) trading as ‘ahm Health Insurance’.
The competition regulator alleges that Medibank made false representations about benefits covered by its health insurance policies, in breach of the Australian Consumer Law.
ACCC Chair Rod Sims says the ACCC will allege that Medibank incorrectly rejected claims or eligibility enquiries from over 800 members for benefits that they were entitled to and were paying for.
Medibank and ahm today responded to the ACCC proceedings stating the issue was caused by an internal process failure, where a number of MBS item codes belonging to the joint and reconstruction category were not entered on the system for the Boost and Lite products.
The private health insurer says the issue was identified as a result of receiving customer complaints, which led to an internal investigation of the matter. A program of compensation was established to ensure affected customers were compensated.
Shares in Medibank (ASX:MPL) are trading 1.38 per cent lower at $3.57.