Harney urged to bring in risk equalisation

FAILURE by Tánaiste Mary Harney to introduce risk equalisation before the end of the year could have a catastrophic effect on the health insurance market, experts warned yesterday.

The scheme, in which insurers with low claims costs transfer cash to companies insuring higher risk clients, is designed to maintain fairer premiums which do not penalise the old or unwell.

Without it, employees could be faced with prohibitive price rises, with increases of as much as 600% to 700% for older people, the head of Farrell Grant Sparks (FGS) Consulting Tom Murray warned.