Posted by Michael Wonder on 14 Mar 2017
Medibank Private 'highhanded', 'cynical' in misleading consumers: ACCC
14 March 2017 - Australia's largest health insurer Medibank has been accused of "cynical" and "high-handed" conduct that misled and deceived consumers through it secretly changing policies that left sick people with large unexpected bills, a court has heard.
The Australian Competition and Consumer Commission has accused the former government-owned entity of engaging in a cover up of its "unconscionable" behaviour which saw it put profits over people.
The ACCC is suing the company in the Federal Court with the trial starting this week, alleging Medibank made the changes to boost its profits ahead of its 2014 float. The policy change could have delivered between $20 million and $24 million in earnings to the company according to forecasts, the ACCC alleges.
