VIVAS slams EU decision to 'support subsidisation' of Vhi

VIVAS Health has expressed disappointment at the decision byt the European Court of First Instance to dismiss Bupa's challenge of risk equalisation in Ireland.

Chief executive of VIVAS Health Oliver Tattan said: "While we are disappointed that the Commission has endorsed a system of subsidisation of the most dominant player in the market and has deemed that this form of state aid is legal the CFI case was just one of many legal investigations underway at a local and European level.

"The outcome of the other cases may not be known for a substantial period of time. Until all investigations are resolved the market will continue to suffer from a lack of investment and from limited competition.

"There is a need for urgent action by the Irish Government to address the wide range of issues facing competitors in the health insurance market in Ireland – the most critical of which is the dominance of the Vhi.

"The ongoing implementation of the risk equalisation scheme will only serve to further exacerbate this issue – these issues have been recognised and raised both by the Government commissioned Barrington Report and by the Competition Authority .

"We are calling on the Government to reform the market regulatory regime; to outline how it plans to ensure that the Vhi will achieve its required solvency levels within the next ten months; to set out a workable form of Risk Equalisation that is equitable, fair and sustainable and to develop a plan for reducing Vhi’s overall market share. "