Harney's about-face on risk equalisation

I CHANGED over to BUPA from VHI at a time when I had acquired 'golden oldie' status because I received a more competitive quote from them for a comparable scheme and so did my wife.

We have just undergone an intensive free medical check-up, stated to be worth €450 each, having made the appointment last October.

If I had to change the appointment I would have had to wait until next July.

If BUPA lose the risk equalisation battle, where will this free check-up be available for the older age category?

In view of the health problems stated to be building for younger age groups, resulting from obesity, substance abuse, alcohol and lack of exercise, it seems inevitable that BUPA, in decades to come, will be looking for risk equalisation if it does not adequately fund its reserves for this contingent liability.

It seems VHI did not create such adequate reserve funding when it had a monopoly of the health market up to 1996.

The PDs are understood to favour competition throughout the economy rather than monopoly and cross-subsidisation.

The Tánaiste, Mary Harney, seemed to adhere to this policy last July when rejecting risk equalisation.

She has now reversed that policy on the basis that BUPA were aware of legislation providing for risk equalisation when entering the market here, while VHI apparently needs this cross-subsidisation.

I can only hope now that BUPA will contest the risk equalisation issue all the way to the European Court so that their customers in the older age group will be able to enjoy the present excellent service.

Phil Duggan

37 Firgrove Lawn

Bishopstown

Cork