BUPA appeal delays start of risk equalisation scheme
The three-judge court of Mr Justice Adrian Hardiman, Mr Justice Hugh Geoghegan and Mr Justice Nial Fennelly yesterday granted an application by BUPA for the stay to continue until the hearing of the company’s appeal. A date for that appeal has yet to be fixed.
Last December, BUPA lost on all grounds its High Court challenge to the validity of the Risk Equalisation Scheme (RES).
Mr Justice Liam McKechnie said he accepted the State’s evidence that, without such a scheme, there is a threat to the stability of the health insurance market. He noted BUPA had entered the market knowing its regulatory framework.
BUPA complained that the scheme, which would involve it paying a subsidy to compensate the VHI for having a greater number of high-risk, older and more expensive subscribers, would cost it €30 million.
Yesterday Mr Paul Sreenan SC, for BUPA, said his client was seeking a stay on the introduction of the RES pending the outcome of the appeal. He said the appeal may have to be split as there could be a referral in the appeal hearing of certain issues to the European courts.
Mr Eugene Regan SC, for the State, said while they had consented to the stay on introduction of the RES until June, the State was concerned about “an indefinite stay” in a matter that had already involved “protracted litigation.”
Mr Paul Gallagher SC, for VHI, said his clients were concerned about a “never -ending extension” of the stay. This “long-term uncertainty” over the RES was causing “very significant difficulties” for the VHI.
Mr Justice Hardiman said the appeal, which is expected to last five days, will be heard in the summer. While the court could hear those parts of the appeal relating to domestic law, some issues could be sent to the European Court in Luxembourg.
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