Skewed Health Insurance Market

The managing director of BUPA Ireland has raised grave concerns over the structure of the health insurance industry in Ireland.

According to Martin O’Rourke, the way in which the health insurance industry has developed in Ireland will only support the creation of a monopoly . The warning came following decisions by the Irish high court to force BUPA to pay out hundreds of millions of pounds compensation to its nearest rival, VHI.

The scheme, which BUPA appealed over, is known as Risk Equalisation. BUPA had to compensate VHI over the scheme because VHI have more elderly, costly subscribers. Speaking to the popular health website irishhealth.com, O’Rourke chastised the situation, calling it ‘completely skewed’ in the favour of VHI.

BUPA will now withdraw from the Irish health insurance market, a situation that O’Rourke called ‘devastating’ for both BUPA staff and for himself. Three hundred staff would be threatened with job losses. The news is bringing a storm of controversy to the Irish health insurance industry .