VHI should seek new members — not subsidies

ONE good thing is likely to emerge from the debate about health insurance, and that is the role of VHI which has come under close scrutiny and is likely to be forced to make substantial changes to its operation.

A market subject to government intervention and in which the State owns the dominant player is always likely to be distorted in favour of the establishment.

When BUPA entered the Irish market, it offered lower premia and undoubtedly attracted younger and more cost-conscious customers, while older and generally less healthy people were likely to stay with VHI.