Vhi Healthcare welcomes European Court Decision on Risk Equalisation

February 12th, 2008 – Vhi Healthcare welcomes the decision of the European Court that the European Commission acted within its powers in facilitating the introduction of Risk Equalisation in Ireland.

In dismissing the Bupa action, the Court declared that “Such a mechanism is a necessary and proportionate means of compensating the insurers required to cover, at the same price, all persons living in Ireland, independently of their state of health, age or sex”.

According to Vincent Sheridan, Chief Executive, Vhi Healthcare "The decision of the European Court today to dismiss the Bupa action is very good news for consumers in Ireland since a negative judgement could have meant the end of Community Rating for health insurance in this country.  Community Rating has been the basis of health insurance in Ireland for the past 50 years.  Indeed the decision will be welcomed right across Europe as evidenced by the involvement of the Dutch Government in the case".

 He continued “Today’s decision is bad news for those who wish to use Community Rating as a means of generating windfall profits by way of regulatory arbitrage . It also marks another failed attempt by BUPA to destroy Community Rating in Ireland"