Defence optometry contract cancelled

25 July 2014 | Media Release

Earlier today, Defence’s medical and allied health provider to Australian Defence Force (ADF) personnel, Medibank Health Solutions (MHS), announced that it had terminated its contract with its optometry service provider, Luxottica Retail Australia Ltd, effective immediately.

MHS advised Defence that Luxottica breached its contractual obligations by transferring optical claims information overseas for processing.

MHS has apologised to all ADF personnel for any concerns that this breach has caused.

While the exact nature and amount of information transferred out of Australia is still being confirmed, it is assumed that all ADF personnel who received optical services through Luxottica since October 2012 are affected.

Vice Chief of the Defence Force, Vice Admiral (VADM) Ray Griggs, has advised all ADF personnel of the issue and outlined interim arrangements for optical services.

“Both the Chief of the Defence Force, Air Chief Marshal Mark Binskin, and I are treating this issue very seriously,” VADM Griggs said.

“Our priority is to understand the extent of the data transferred overseas while ensuring ADF members can continue to access optical services.”

VADM Griggs said Defence was working to fully assess the impact of Luxottica’s actions for both individual ADF members and Defence.

MHS has confirmed no other subcontractor providing services under the Defence contract is handling personal information off-shore.

Media contact:
Defence Media Operations (02) 6127 1999

Issued by Ministerial and Executive Coordination and Communication,
Department of Defence,
Canberra, ACT
Phone: 02 6127 1999 Fax: 02 6265 6946

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