BUPA and VHI continue competitive battle

BUPA Ireland and VHI became involved in another war of words over who offers the best value to members.

In a new twist to the saga yesterday VHI agreed with the BUPA claim that it provided a cheaper service.

But a spokeswoman for the VHI said members of VHI got significantly better value for the modest extra cost.

She argued also that if BUPA had to pay into an equaliser fund it would not be offering such good prices because it would be forced to share the burden of the much older membership built up by VHI down though the years of long service to the Irish market.

Martin O'Rourke, BUPA’s Irish boss laughs at that suggestion. “We were not responsible for the ending of Tír na nÓg in this country,” he said.

It is equally ludicrous for VHI to suggest we subsidise their membership while they hold on to their fee income, he said.

BUPA also rejects the claim that VHI offers a superior product. Several independent consultants including Becketts and Mercer recommend BUPA over VHI to companies in Ireland, he said.

Those recommendations speak for themselves and Mr O'Rourke said BUPA was building membership at twice the VHI rate since it entered the market six years ago.

VHI is more comprehensive and covers about 11 hospital more than BUPA including St John of God’s the country’s top psychiatric unit, the VHI spokeswoman said.

If it were forced to pay into a fund to share the burden of the cot of care for older people it would find it very difficult to maintain its marginal price advantage, she said.

The cost differential is based family cover for two adults and two children.

VHI is due to increase its rates by 18% this weekend and the spokeswoman said that was the only reason BUPA was having a jibe at it at this stage.

“People are voting with their feet and joining VHI at the rate of 5,000 per month", she said.

BUPA said it its statement that figures for the past six years show it has "at all times" charged significantly lower prices than the VHI.

On the mainstream products this price differential has produced a total saving to a family of two adults and two children of over Euro1,000 over a six-year period.

“These facts put to bed once and for all the mis -information being promoted that after each insurers’ price increase, there is no real difference in prices or that you only get a price differential for a short period,” said BUPA.

Consumers should not be confused or deterred from shopping around no matter when their premium is due.