Insurer says it would be forced to quit market

THE health insurance company BUPA will have liabilities of €161 million 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 yesterday.

Paul Sreenan SC, for BUPA, told the court the scheme, which would involve the company 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 €11m this year.

He said that over three years it would involve liabilities of €161m compared to an expected revenue of €64m. “Looking at the figures one can see there is no realistic prospect of BUPA remaining in the Irish market, nor would they do so,” he said.