BUPA: Risk equalisation scheme is 'unconstitutional', court hears

The health insurance company BUPA will have liabilities of €161m over three years and would be forced out of the Irish medical insurance market if the risk equalisation scheme is introduced by Health Minister Mary Harney, the High Court was told today.

Mr Paul Sreenan SC, for BUPA, told the court that the scheme, which would involve BUPA paying a subsidy to its main rival VHI to compensate for the VHI having a greater number of high risk, older and more expensive subscribers, would expose BUPA to losses of €11mthis year.