Risk equalisation - BUPA exit would be bad for Ireland

THE long-awaited judgment of the High Court in the battle between Ireland’s health insurance operators means BUPA will have to compensate VHI because of its older membership base.

While a Supreme Court appeal against the ruling is anticipated, the verdict is a resounding victory for VHI, Ireland’s biggest health insurer. It also vindicates Tánaiste Mary Harney’s decision to trigger the risk equalisation process requiring BUPA to pay compo.

The outcome will have a profound impact on the Irish private health insurance industry. One way or another, it will have repercussions for VHI’s 1.55 million customers, BUPA’s 400,000 clients and over 80,000 Vivas Health subscribers.

Not surprisingly, BUPA described yesterday’s verdict as “a bad day for Irish consumers and a dark day for BUPA Ireland and its customers”. They reckon it will cost the company around €161 million over three years.

Whatever transpires in the health insurance war, in terms of competition, it would be a retrograde development for consumers if BUPA abandoned the Irish market.