Health cover market to be investigated

THE Government has appointed an expert group to review the profitability of the health insurance market in Ireland.

The announcement of the composition of the group by Health Minister Mary Harney yesterday follows on the recent controversial decision by the country’s second largest health insurance provider, BUPA, to withdraw from the Irish market.

BUPA claims it is no longer profitable to operate in the Republic after the High Court ruled last month that the Fermoy-based company must pay a multi-million euro compensation package to its main rival, VHI, under the Government’s risk equalisation scheme.