Risk equalisation essential to VHI future, chief warns

THE future of the VHI is at risk unless the Government changes the law immediately to ensure BUPA’s new owners pay into the risk equalisation scheme, the company’s chief executive has warned.

Vincent Sheridan is also confident that the Competition Authority will not recommend the break-up of the VHI. Its report is with Health Minister Mary Harney and is expected to be published next week.

The Quinn Group, which last week took over BUPA, said that as new entrants to the market they could avail of the derogation from paying into the risk equalisation scheme for three years.