Risk equalisation plan - Bupa void is unhealthy for clients

WITH companies lining up for Bupa’s lucrative business, following its decision to pull out of the Irish health insurance market, the British-owned group yesterday lost another hand in the high-stakes poker game surrounding the controversial issue of risk equalisation.

Under the risk scheme, Bupa was compelled to fork out around €1 million a week, effectively using profits from its younger, healthier customers to subsidise the cost of older VHI clients who are far more likely to claim on their policies.

Pending a Supreme Court appeal, yesterday’s High Court ruling means the Fermoy-based group, employing 300 people, will have to pick up the legal costs of the State, VHI and the Health Insurance Authority, a whopping €5 million bill for its unsuccessful court action against the risk equalisation scheme.