VHI is to appeal a High Court ruling that it cannot be represented at a court action by Bupa over the controversial risk-equalisation issue.
VHI Healthcare said it will appeal the recent High Court decision that the organisation should not be allowed to participate a court case taken by Bupa Ireland against the Department of Health & Children and the State.
Bupa is challenging the legislation providing for the operation of so-called risk equalisation payments. Under that scheme, it would have to pay millions to its rival health insurer to compensate for the fact that VHI has a much older client base who are more likely to make health insurance claims.
However, the Tánaiste and Minister for Health recently decided not to activate the risk equalisation measure. VHI then warned that its financial future was at stake over the issue.
VHI chief executive Vincent Sheridan said today: "The action taken by Bupa against the Department of Health & Children would, if successful, effectively destroy the system of community rating, which has been the cornerstone of private health insurance in Ireland for almost 50 years.
"While VHI Healthcare has every confidence that the State will successfully defend this case, we have decided to appeal the decision by the High Court that VHI Healthcare should not be allowed to be directly involved in the case."
"VHI Healthcare has supported the Government policy of community rating for health insurance in Ireland since 1957. It is an issue of fundamental importance to our 1.56 million members and thus we believe we must seek to represent their views at the hearing of this case."
On July 27th, Bupa succeeded in preventing the VHI from being represented at its legal challenge.
Bupa intends taking a constitutional challenge in the High Court to section 12 of the Health Insurance Act which allows for the introduction of risk equalisation payments in the health insurance market. It also claims that it breaches an EU directive.
The act allows the Minister for Health, Mary Harney, to introduce risk equalisation payments in the health insurance market.