EU court approves VHI/BUPA risk equalisation scheme

THE controversial risk equalisation scheme in Ireland — whereby elderly and ill people insured by the largely State- owned VHI are shielded from higher health insurance premiums — has been approved by the European Court of Justice.

BUPA, the British health insurer, challenged the system whereby it and other private health insurance companies must compensate the VHI for having a larger number of members who require regular medical and hospital treatment and who are therefore more expensive.

The company appealed to the European Court of Justice, saying the European Commission should not have allowed the Government to take this action as it breached state aid rules.