ACCC taking NIB to court over misleading claims

Peter Terlato 30 May 2017 NEWS


Members remit gap payments previously covered by NIB.

Australia's consumer watchdog has taken action against NIB, alleging the insurer failed to adequately notify its members of the decision to remove certain eye procedures from its MediGap Scheme in 2015.

The Australian Competition & Consumer Commission (ACCC) instituted Federal Court proceedings this week, asserting that between June 2011 and October 2016 the company made representations to its members that several policies covered eye procedures, exempting them from out-of-pocket expenses.

However, NIB removed these eye procedures and other services from its MediGap Scheme in August 2015 and the ACCC allege the insurer did not properly inform members of these changes in advance.

Prior to August 2015, NIB covered gap payments for members undertaking these types of procedures with participating doctors and specialists through its MediGap Scheme.

Policies affected by these changes include Basic Plus, Family Basic Saver, Family Plus, Hospital Plus, Just Hospital, Mid Plus, Premier Plus, Top Cover, Young at Heart Mid and Young at Heart Top.

The ACCC is seeking declarations, pecuniary penalties, injunctions, findings of fact, compliance program orders, corrective notices and costs from NIB.

Picture: Shutterstock

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