Health insurance - Loophole in law could hurt Harney

THE future of State-owned VHI, Ireland’s biggest health insurance operator, is coming under serious threat and the Government’s community rating policy may have to be torn up following the move by a second company to side-step paying risk equalisation subsidies to VHI.

Having enjoyed a monopoly for years, it appears the special status of the VHI group is on the verge of coming to an end. Financially, the consequences for more than 1,500,000 million subscribers would be dire if competing companies succeed in exploiting a loophole enabling them to avoid paying compensation to VHI.

From the public’s viewpoint, there is now a worrying cloud of uncertainty hanging over the health insurance market. Politically, Health Minister Mary Harney is in the dark as she awaits advice from the Attorney General on the legal implications of the threat by VIVAS to follow the example set by the Quinn Group.