VHI HEALTHCARE will cover the cost of a new drug used to treat the most dangerous form of skin cancer.
Ipilimumab is used in the treatment of patients with malignant melanoma.
The drug costs about €85,000 per patient and is delivered as an intravenous infusion in four separate sessions.
Ipilimumab has been shown to delay the progression of the cancer and to improve survival among some patients with previously treated advanced melanoma.
About 60 patients a year in the Republic would require the treatment. VHI said that about 25 of those will be its customers. The company insures 1.2 million people.
It said it had been able to fully cover the cost of the drug following intensive negotiations with the manufacturer, Bristol-Myers Squibb. It is estimated the insurer spends about €225 million on cancer treatments for its members each year.
Ipilimumab was made available to public patients in the State last May, following a campaign that was led by Dublin woman Cathy Durkin. Ms Durkin, who had melanoma of her eye, died last month.
The new drug had been deemed too expensive to be covered by the National Centre for Pharmacoeconomics but a campaign by oncologists and patients, including Ms Durkin and Prof John Crown, had the decision reversed.
VHI medical director Dr Bernadette Carr said: “While we anticipate that up to 25 VHI Healthcare customers will avail of the new drug over the next year, this is an expensive therapy and it will represent a significant additional claims cost to VHI Healthcare.”