Health insurance report backs risk equalisation

A NEW report on the private health insurance market has strongly backed the implementation of the controversial risk equalisation scheme, which compels health insurers to pay compensation to the VHI.

However, it suggests that Health Minister Mary Harney should extend the phased-in period before VHI’s competitors should have to make payments to the State-owned insurer.

The scheme, which is designed to compensate VHI for having an older customer profile, has consistently been opposed by its rivals, BUPA and VIVAS. Both companies have sought measures to avoid making multi-million euro payments to their main competitor.