Harney reiterates vow to close risk equalisation loophole

Minister for Health Mary Harney has reiterated that she intends to close a possible legal loophole that could allow Quinn Direct and Vivas to avoid making risk equalisation payments.

Quinn Direct, which is buying out BUPA's business, claims it is a new entrant in the market and, as such, is exempt under the law from making the payments to the VHI for the next three years.

This morning, the other firm in the Irish health insurance market, Vivas, said it would also use a similar legal mechanism to avoid making the payments if the Quinn Group was able to get away with it.

However, asked about the matter in Dublin, Ms Harney reiterated that she was currently getting legal advice on the situation and would not allow such a situation to develop.

She also reiterated her intention to address the existing situation whereby the VHI does not have to put the same amount of money aside for solvency requirements as its competitors.