NIB Holdings Share Price Climbs 4.5% after ACCC Allegations

NIB Holdings Ltd [ASX:NHF] jumped 4.5% this morning to $5.38 per share.

What happened?

Yesterday, NIB announced the Australian Competition and Consumer Commission (ACCC) was taking them to court. The ACCC took issue with an incident which occurred in August 2015.

NIB failed to communicate to customers changes made to its MediGap Scheme.

MediGap is a scheme which allows doctors and other in-hospital medical providers to receive higher fees subject to there being no ‘out of pocket’ expense for the patient.

What now?

NIB rejects the ACCCs accusations. They believe they have acted lawfully and ethically. The share price rise today may indicate that investors believe NIB was oversold yesterday on the news.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning

PS: If you’re interested in investing in smaller growth stocks, check out Sam Volkering’s new report, ‘Top Three Aussie Small-Cap Stocks’.

Sam is a small-cap guru. He’s managed to find growth in a market where many investment professionals simply can’t find any.

To get your free copy of Sam’s report, click here.


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia