VHI should be able to take on competitors
For 40 years the VHI has been a pampered semi-state monopoly with the Government always more than generous in sanctioning its regular demands for higher premiums.
It enjoys around 80% of the market, with over 1.56 million members. There is no reason why it should not be capable of taking on competitors if it had been effectively managed over the years, ensuring adequate hedge funds to meet all contingencies. Instead it is demanding of BUPA, Vivas and others millions of euro for the privilege of entering the Irish market.
It is understandable, provided they remain competitive, that BUPA and others would need to build up big profits initially to create the reserves that would be required later. The day will come when their members, too, will grow old and become more expensive - the basis of VHI’s current argument for a levy.
An independent ombudsman should be appointed to ensure all subscribers to private health insurance companies receive top-class service.
Scrap the risk equalisattion scheme. Put in its place a legal guarantee that if VHI was unable to provide a satisfactory service particularly for older members, they would then be compelled to transfer a percentage of them to any competitor of choice. If this doesn’t work, let things stand with both sides engaging in honest, open competition that will give consumers value for their contributions.
This would be much better than for BUPA to take the issue through the courts, at members’ expense, while possibly still not arriving at a decisive arrangement. Competition here means just not the life of trade, but the life of people, too.
James A Gleeson
The Grove
Thurles
Co Tipperary
