The Department of Defence is facing questions over a $3.4 billion contract with Bupa to supply health services for Australian Defence Force personnel, just months after a federal court penalised the insurance giant for deceptive conduct.

Bupa, one of the largest private health insurers in Australia, agreed to pay $35 million in penalties in June after it admitted to misleading thousands of customers about their private health insurance benefits over a five-year period.

The company, which took over a six-year contract to provide health care for Defence bases across Australia in 2019, said it was "deeply sorry" and admitted to engaging in unconscionable conduct relating to its assessment of hundreds of mixed coverage claims.

The scathing federal court judgement came about a month befor

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