A temporary block on a requirement that new health insurance companies must make risk equalisation payments to the State-backed VHI is to continue pending the outcome of a Supreme Court appeal which opened yesterday.
Risk equalisation means other insurance companies must compensate VHI for its older and less profitable customer base.
Chief Justice Mr Justice John Murray told the sides in Bupa's appeal against the High Court's rejection of its challenge to risk equalisation that a stay on introduction of the scheme would continue pending the outcome of the appeal.
That appeal opened yesterday and is expected to conclude on Friday when it is anticipated the court will reserve judgment.
The stay on introduction of risk equalisation was obtained in July by the Quinn Group, which took over Bupa earlier this year.
The Quinn Group has argued in separate proceedings yet to be determined that it is not obliged to make payments under the scheme for three years. It claims it would incur costs of some €30 million if obliged to make payment.
Earlier yesterday, Denis McDonald SC, for the VHI, said it was his understanding that the stay was only in place until yesterday. The VHI, with 1.55 million members, has said risk equalisation is vital to the future of the community-rating scheme under which health insurers must charge customers the same premium for a particular plan regardless of their age or health history.