The Labour Party has welcomed today's decision of the High Court not to grant an order to Bupa preventing the introduction of risk equalisation in the health insurance market from January 1 st.
Labour's health spokeswoman Liz McManus said the decision would "level the playing field" for VHI in competing for new business.
"Today's High Court decision allows the belated introduction of risk equalisation after it was first put into law by the Oireachtas in 2001, and after years of Government procrastination on the issue," she said.
"During that time, the VHI has had to carry a disproportionate share of the burden while BUPA, the biggest private operator in the sector, was making excessive or 'super-normal' profits."
A report from the Health Insurance Authority last October said that the absence of risk equalisation had facilitated BUPA in making a surplus of 17.3 per cent of earnings from subscriptions last year.
"In the light of this it is clear there is no valid reason whatsoever for risk equalisation not being introduced," Ms McManus said.
She said without it, new entrants into the market would "cherry pick" the most profitable customers.
"BUPA was well aware of the imminent arrival of risk equalisation when it began offering its service to customers here a number of years ago. It is disingenuous now to claim that they have no option but to leave the Irish market, especially when they have been making such huge profits for so long.
"I hope their threat to leave Ireland was simply part of their legal strategy made in court. Now that the decision is made it makes no sense for BUPA to continue with this threat."