THE Consumers' Association of Ireland has called on the Minister for Health to separate his function as sole shareholder of the VHI from his role as regulator of the health insurance industry.
Arguing that the overlap did not inspire confidence for the consumer or for any new entrant to the health insurance market, the CAI called on the Minister to set up an independent regulator. "The captain of the team cannot be referee of the match", a spokesman said.
Referring to the BUPA controversy, the CAI said that it was unreasonable for health insurance products to be marketed before regulatory approval was secured. Companies should be required to secure approval before marketing and an independent regulator should ensure that products stayed within the bounds of community rating.
Meanwhile, the Irish Patients' Association has said that the issue of community rating could not be allowed to slide away. "The idea of inter generational solidarity is a very important one and if it is to go it should be a deliberate social decision, not just left to market forces", said an IPA spokesman, Mr Steve McMahon.
Mr McMahon emphasised that the association welcomed BUPA's entry into the market. "One of the reasons we came into being was that people felt they were paying more and getting less in the VHI."
One BUPA customer contacted by The Irish Times was not unduly concerned by the controversy. Mr Peter Doyle, a 30 year old dentist in Sligo, said he had taken out BUPA's basic policy because it offered cover for alternative treatments such as acupuncture and because it seemed better suited to people travelling abroad. "I'm hoping to emigrate to Spain", he said, "so the VHI wouldn't have been much use to me anyway."
He believed that his basic policy would be unaffected by any changes which might be made to BUPA's cash schemes. "Community rating is a good thing - you can't argue against that. But I think I'd be more worried as a VHI subscriber by all the reports of the company's difficulties."
