Health insurance firms await Bupa ruling
A long-awaited High Court decision is due today on whether health insurance companies with younger customers should compensate rivals with older customers.
The court will deliver its verdict on the challenge by BUPA to the Government rule that it should pay an estimated €161m to VHI over three years as part of risk equalisation.
The Government claims risk equalisation is essential to compensate VHI for having a high proportion of older and more costly members.
VHI has said it needs the compensation to maintain community ratings, whereby everyone regardless of age or health status pays the same premium for the same level of cover.
It is feared if BUPA fails its court challenge, the British company could pull out of the Irish market with subscribers having to transfer to VHI or VIVAS.
The case could also result in a price hike in private health insurance.
