Risk equalisation - Taking a risk to conserve the grey vote

IT was entirely predictable that Health Minister Mary Harney’s decision to trigger risk equalisation in the Irish health insurance market would be strongly resisted by private insurers.

Thus, while the State-owned VHI group has welcomed the move, an interim High Court injunction has been secured by British-owned BUPA Ireland, preventing the minister from implementing the measure on New Year’s Day.

Effectively, the aim of the minister’s long overdue initiative was to create a more level playing field by compelling private operators BUPA and VIVAS to share the burden of insuring older customers, the vast majority of whom are covered by VHI.