Medibank Private accused of misleading customers on health fund claims

Australia's biggest private health fund Medibank Private has been accused of misleading customers by failing to tell them about changes to benefits for pathology and radiation treatment.

The consumer watchdog the ACCC is taking Medibank to the Federal Court accusing it of unconscionable conduct to protect its brand and reputation.

Medibank Private listed on the sharemarket two years ago after being sold off by the Federal Government and has been in a battle with private hospitals over benefit payouts.

ACCC chairman Rod Sims spoke with the ABC's Peter Ryan.