The war of words between the VHI and BUPA, the two main health insurers in Ireland, reached a new high yesterday when the managing director of BUPA, Mr Martin O'Rourke, claimed that Government policy was directly affecting his company's ability to do business in the Republic.
At a news conference in Fermoy, Co Cork, at which BUPA released details from a research survey undertaken by Lansdowne Market Research, Mr O'Rourke, said the Risk Equalisation Mechanism, which would force BUPA to pay the VHI almost £7 million, was unfair and ran contrary to the spirit of European Union legislation.
BUPA may have to pay the money next year.
At yesterday's news conference, he said BUPA had examined the Irish market afresh using Irish pollsters and had found there was a new demand for the liberalisation of the market.
Consumers wanted not only more companies in the business of health insurance, but also wanted more competition and more products.
He said BUPA now had some 75,000 members in Ireland and the market could easily support a number of other companies working in the field.
Mr O'Rourke also claimed restrictive practices in the areas of health packages and the services provided by hospitals had not given the best value for money to those seeking care under their existing insurance plans.
He pointed to the fact that according to BUPA's estimates, only £300 million of the State's health bill was insurable, while more than double that sum did not come under insurance at all.
BUPA said in its own survey, it found consumers felt one of the main benefits of competition in the insurance market would be reduced prices.
The findings showed 70 per cent of respondents believed there were not enough options; 60 per cent thought there was insufficient choice; 80 per cent of the VHI's own customers would not be averse to seeing more competition in the industry, and the majority of people interviewed were of the opinion that the only result from greater choice would be a better deal for those paying health insurance premiums.