The Competition Authority has brought High Court proceedings against the Irish Dental Association, alleging it is boycotting a new private dental insurance scheme for VHI members in an attempt to prevent the successful development here of a market for private dental insurance.
The authority also claims another objective of the alleged boycott is to prevent the emergence of cheaper private dental services for Irish consumers.
In proceedings against the Irish Dental Association Limited, the authority is seeking interlocutory orders - orders applying pending the outcome of a full action - restraining the dental association from recommending that its members do not complete the VHI DeCare dental insurance scheme claim forms or from hindering the introduction of the scheme.
It also wants orders restraining the dental association from co-ordinating a boycott of the VHI DeCare scheme or engaging in collective action with the object of interfering with the business of VHI DeCare Dental. It seeks further orders restraining the dental association from preventing dental health insurers from entering the market here and requiring the association to inform its members that it is a matter for dentists to individually decide how to conduct their affairs with dental health insurers.
The case came before Mr Justice McKechnie for mention yesterday and the interlocutory application was adjourned for further mention on March 14th. The judge said he hoped to fix a date for hearing of the action shortly after March 14th and prior to the end of the law term on March 18th. Both sides said they were anxious for an early hearing.
The Irish Dental Association represents an estimated 1,200 of some 1,900 practising dentists in the State. DeCare International of Minnesota is a US-based company specialising in dental insurance. It has a number of subsidiaries, including DeCare Dental Insurance Ireland Limited (DCDII), with registered offices at Claremorris, Co Mayo, which latter company is licensed to issue dental insurance here.
In May 2004, DeCare, with the VHI, launched the first private dental insurance scheme here, VHI DeCare Dental. The VHI is responsible for the sale and marketing of the product while DeCare is the underwriter. DeCare handles the claims processing and deals with the dentist and, where appropriate, the Irish Dental Association.
Under the scheme, VHI members pay a premium to receive reimbursement of 100 per cent of the cost of preventative dental care and routine visits to the dentist. Between 50 and 70 per cent of the cost of more specialised treatment is also reimbursed.
Those who avail of the scheme deal with the VHI. When they attend their dentist, they are required to have the VHI DeCare form completed and signed by the dentist. They then return the completed form and are reimbursed by DeCare.
The Competition Authority claims the Irish Dental Association has been advising its members not to complete the forms and that this alleged boycott breaches the Competition Act and Articles of the European Treaty. The authority alleges the association wants to prevent the development of a market for private dental insurance here.
The authority has complained that the association wrote in July and October last year to its members advising them not to complete the DeCare claim form unless a negotiated settlement was reached with the association. It says dentists in the association are continuing to refuse to sign the forms. It has also claimed some dentists are seeking to persuade customers against buying the DeCare product.
In August 2004, the authority received a complaint that the association had organised a boycott of DeCare and began an investigation. It sought undertakings from the dental association but none were given. It then began High Court proceedings.