BUPA risk equalisation demand four times too much, says insurance study

BUPA’S subsidy payments to health insurance rival VHI could have been quartered if a fairer method of calculation was used, a consultant’s report has claimed.

The report by Goodbody Economic Consultants says the €33 million annual demand on BUPA, which prompted the company to announce its withdrawal from Ireland, could have been reduced to as little as €8.3m.

The report was commissioned by VIVAS health which faces making its first annual payment to VHI under the controversial risk equalisation scheme in October this year. Its chief executive Oliver Tattan said yesterday his company expected demands of at least €20m over the next three years.