Emergency legislation closes risk-equalisation loophole

The fate of 300 jobs and around 475,000 BUPA customers is hanging in the balance once again.

Last night the Cabinet rushed emergency legislation through the Dáil to close a loophole which would have allowed the company to avoid paying risk equalisation.

Quinn Direct bought out the Cork based outfit last month after the health insurer announced it was leaving the Irish market.

The new law prevents Quinn Direct from availing of a three-year exemption from risk equalisation payments.

This means the company will have to pay as much as €120m to its rival VHI to compensate the state-backed health insurer for its older client base.

The bill was passed by 63 votes to 30. Fine Gael voted against it, while Labour abstained.

Questions are now being asked about the viability of the Quinn Direct takeover.

The move could push up premium prices, or could even force the company out of the market, sparking fresh fears about the future of 300 jobs in Fermoy, Co Cork.