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Bupa Faces A$35 Million Penalty Over Misleading Health Insurance Claims

The proposed penalty follows findings that unclear staff guidance as well as automated claim systems caused thousands of valid submissions to be unjustly rejected

Bupa was fined $35m for misrepresenting customers. NewsWire / Nicholas Eagar
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Overview

  • Bupa and the ACCC will jointly ask the Federal Court to impose a proposed A$35 million penalty for the insurer’s conduct between May 2018 and August 2023
  • The company admitted to misleading or deceptive conduct by incorrectly rejecting more than 4,100 mixed coverage and uncategorised item claims
  • Bupa has paid A$14.3 million in compensation to affected members, medical providers and hospitals
  • ACCC chair Gina Cass-Gottlieb said the wrongful rejections led some customers to delay, cancel or forgo necessary treatments and incur significant out-of-pocket costs
  • The insurer is overhauling staff training, clarifying claims guidance and updating automated processing systems to prevent similar errors