Bupa wins leave to challenge risk equalisation

The High Court has granted leave for health insurer Bupa to challenge the Minister for Health Mary Harney's decision to commence…

The High Court has granted leave for health insurer Bupa to challenge the Minister for Health Mary Harney's decision to commence risk equalisation levy payments.

We are determined not to be forced out of the market
BUPA Chief Executive Martin O'Rourke

Bupa will challenge the decision itself and said tonight it would also argue both the Health Insurance Authority and the Minister's decision making processes were legally flawed.

After the company was granted leave in the High Court to take review proceedings this evening, 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."

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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 €161 million when its projected underwriting profits for the period were €64 million.

Bupa has 440,000 subscribers and around 300 staff in Ireland .