Media releases

July 25, 2014

Medibank Health Solutions terminates Luxottica ADF contract

Medibank Health Solutions (MHS) has today terminated its contract with Luxottica Retail Australia Ltd for the provision of optical services to the Department of Defence.

A recent MHS review discovered Luxottica had breached its contract to keep all Australian Defence Force optical claims information on shore.

Despite Luxottica's breach occurring without MHS's knowledge, MHS apologises to the Australian Defence Force and is sorry for the concerns this may cause Defence personnel.

MHS detected this breach as part of its regular review process in early July and immediately raised concerns with Luxottica. An initial check by Luxottica revealed there had been a breach relating to the transfer of optical claims information overseas.

MHS requested Luxottica undertake a more comprehensive review that revealed the records of Defence personnel who had received optical services from Luxottica since the commencement of the contract had been transferred overseas.

There is no evidence the information has been passed on to any parties beyond those working for Luxottica, and Luxottica has confirmed it has taken steps to recover the optical records sent offshore.

MHS has kept the Australian Defence Force informed and all individuals who have had information transferred offshore are being contacted by the Australian Defence Force.

The rapid detection of Luxottica's breach by MHS's internal systems demonstrates the care taken by MHS to protect Australian Defence Force information.

MHS has since asked for and been given written undertakings from all other sub-contractors dealing with the contract that no information about Australian Defence Force personnel has been handled offshore. This is in addition to the risk and assurance statements sub-contractors make as part of ongoing contract governance.

Each sub-contractor has assured MHS they adhere to the specifics of the contract explicitly stating that all personal information is to be handled in Australia.

MHS is in discussions with an alternative provider to continue the provision of optical services to Australian Defence Force personnel.

MHS is confident that it will continue to provide the highest levels of health services to the Department of Defence.

Back to top