Bupa's risk equalisation battle boosted
Health insurer Bupa’s battle against risk equalisation received a boost tonight.
The High Court granted leave for the company to take review proceedings challenging the Health Minister Mary Harney’s decision to commence risk equalisation levy payments.
Bupa said it would be arguing the decision making processes of the Health Insurance Authority and the minister as well as the decisions itself were legally flawed.
After the company was granted leave in the High Court to take review proceedings, Bupa Ireland managing director, Martin O’Rourke, said: “We will continue to stand for competition and choice in the market both for our customers and for consumers generally.
“We are determined not to be forced out of the market and will continue to pursue every avenue to protect competition and ensure this does not happen.”
The company said the move was part of Bupa’s to stay in the health insurance market in Ireland.
Under risk equalisation companies with relatively younger memberships, such as Bupa, must compensate rivals with an older and less profitable customer base, such as VHI.
The insurer has claimed it could face risk equalisation liabilities of up to €161m when its projected underwriting profits for the period were €64m.
Bupa has 440,000 subscribers and around 300 staff in Ireland.
