Amicus: Harney must support 'risk equalisation'

The Amicus trade union has claimed Ireland could end up with an American-style health insurance system if Health Minister Mary Harney decides against the introduction of so-called "risk equalisation".

Under the practice, health insurers such as BUPA, who have younger and more profitable members, would be required to subsidise companies like the VHI, whose membership is older and more prone to illness.

The measure is designed to protect the situation whereby people pay the same health insurance premiums regardless of their risk of getting ill.

Ms Harney has already delayed the introduction of risk equalisation, but is due to make a final decision on whether to implement the policy before the end of the year.

Amicus national secretary John Tierney warned today that a failure to support the measure would leave Ireland with a US-style system where many elderly people cannot afford the higher insurance premiums they are forced to pay.

"We'll have a disaster on our hands," he claimed. "The health service, given the state it's in at the moment, couldn't handle more and more patients coming in who can't afford health insurance."