Medibank 'disappointed' that the ACCC is appealing Federal Court decision says CEO Craig Drummond

Sydney Morning Herald

13 November 2017 - Medibank chief executive Craig Drummond says the private health insurer is "disappointed" that the competition watchdog is appealing a court case that it lost against Medibank earlier this year in which it alleged the company engaged in misconduct by keeping its members in the dark over new limits on benefits for in-hospital blood tests and scans.

The ACCC lost its Federal Court case against Medibank in late August. It alleged Medibank failed to give notice to members about its decision to limit benefits paid for in-hospital pathology and radiology services and that the company was attempting to prop up its earnings in order to maximise value ahead of a listing on the stock exchange.

But Federal Court Justice O'Callaghan dismissed all allegations and ordered the ACCC to pay Medibank's court costs. At the time, ACCC Chairman Rod Sims said the watchdog was considering an appeal: "The ACCC believes that consumers have a right to be informed in advance of important changes to their private health insurance cover".

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Michael Wonder

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Michael Wonder