Irish health insurance changes slated

Mon, 30 Apr 2007

Following the publication of the Barrington Report, the government has ruled to reduce risk equalisation contributions in the Irish health insurance sector by 20 per cent. Furthermore, a scheme that protects new entrants to the insurance market is to be abolished.

VHI, the company to whom health insurance companies in Ireland have to pay contributions to, is set to become a conventional insurer next year. The government have implemented several of the changes, causing dissent amongst Opposition politicians and major companies .

Government changes are likely to cause more expensive policies, according to health insurance experts. The two companies at the centre of the changes, VHI and Quinn Healthcare, are both understood to be dismayed by the changes. Quinn healthcare, who took over BUPA business when the health insurance company left Ireland, said they will now take legal action against the government.

They concluded: "We have now had the opportunity to study the Barrington Report and the measures announced by the Minister for Health and Children and have met with department officials. We welcome many of the conclusions reached in the Barrington Report and, in particular, the recognition that the main impediment to competition in the private health insurance market in Ireland is the dominant position and derogation from normal insurance solvency requirements enjoyed by VHI."
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