BUPA loses first battle over massive payout to VHI

HEALTH insurer BUPA Ireland has failed to block the introduction of a scheme which will force it to pay millions of euro annually to rival insurers VHI.

However, the company’s threat to withdraw from Ireland subsided yesterday after BUPA Ireland said it was satisfied it would not have to begin compensation payments immediately.

Instead the private health insurer said it had a stay on payments until completion of its legal challenge to the validity of risk equalisation - a scheme which will require BUPA Ireland and VIVAS, who have young clients, to subsidise the VHI for its older, less profitable customer base. The challenge begins on February 7 and is expected to last around six weeks.