VHI to appeal court ruling on risk equalisation action

Vivion Kilfeather

VHI chief executive Vincent Sheridan said the action taken by Bupa against the Department of Health & Children, and the State, would, if successful, effectively destroy the system of community rating, which had been the cornerstone of private health insurance in Ireland for almost 50 years.

While VHI had every confidence the State would successfully defend the case, the VHI had decided to appeal the decision by the High Court that VHI should not be allowed to be directly involved in the case.

Sheridan said the VHI has supported the Government policy of community rating for health insurance in Ireland since 1957.

It was an issue of fundamental importance to their 1.56 million members and the organisation believed they must seek to represent their views at the hearing of this case.

On July 27 last, Mr Justice Peart in the High Court ruled that the VHI should not be a notice party to the case, which was expected to go ahead in the autumn but could now be delayed because of the appeal.

Mr Sheridan warned recently that the VHI stood to lose about 30 million over the next year unless the proposed health risk equalisation payments were introduced to the health insurance market.

Bupa intends taking a constitutional challenge in the High Court to section 12 of the Health Insurance Act, claiming that it breaches an EU directive.

The Act allows Minister for Health Mary Harney to introduce risk equalisation payments in the health insurance market.

Under this system profits from young, profitable health insurance subscribers are used to offset losses from older customers who are more likely to claim their insurance.