NIB Holdings Ltd [ASX:NHF] jumped 4.5% this morning to $5.38 per share.
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.
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.
Junior Analyst, Money Morning
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