Bupa Ordered To Pay £17 Million Pounds After Blocking Customer Claims In Australia

Private healthcare giant Bupa has been ordered to pay £17 million in compensation to Australian members following revelations that the company deliberately blocked legitimate health insurance claims.

The Australian Competition and Consumer Commission (ACCC) uncovered systematic misconduct where Bupa, Australia’s second-largest private health insurer with four million customers, engaged in misleading and deceptive practices. The investigation revealed the company wrongfully advised members they were ineligible for benefits or needed to upgrade their policies unnecessarily.

Members faced significant financial burdens, with many forced to fund their own medical treatments or upgrade to costlier policies to secure coverage. The ACCC’s findings highlighted distressing cases where patients experienced deteriorating health conditions and physical distress due to their inability to afford treatment.

The penalty of AUD 35 million (£16.8 million) covers a five-year period of misconduct. ACCC Chair Gina Cass-Gottlieb emphasised the severe impact on consumers, noting many delayed or cancelled treatments despite having valid coverage.

Nick Stone, Bupa’s Asia Pacific chief executive, attributed the failures to automated processing systems and inadequate staff training. The company, which originated as the British United Provident Association post-World War II, expressed deep regret for the systematic failures.

The Australian market represents a crucial component of Bupa’s global operations, with the Asia Pacific region, including Hong Kong and New Zealand, contributing nearly half of the group’s annual profits. This scandal marks a significant setback for Bupa’s reputation in a key growth market it entered in the early 2000s.