Medibank is facing Federal Court action, with the Australian Competition and Consumer Commission alleging the company kept members in the dark about of a change in policy whereby it would no longer cover costs beyond the Medicare scheduled fee for in-hospital diagnostics services such as X-rays and blood tests. The court heard last week that the move would reap $24 million worth of savings and came just months before the $5.7 billion float of Medibank.

Representing Medibank, Michael O'Bryan QC said the company never had to fully cover its 3.8 million policy holders and always abided by legislation.