Supreme Court to hear Bupa case

A five judge Supreme Court is to hear an application by BUPA for a stay on the introduction of the risk equalisation scheme in…

A five judge Supreme Court is to hear an application by BUPA for a stay on the introduction of the risk equalisation scheme in the health insurance market.

BUPA wants the stay pending the outcome of its appeal against the High Court's rejection of its challenge to the scheme.

Lawyers for BUPA had planned to apply today to the Supreme Court for the stay but when the matter was mentioned, Mr Justice Adrian Hardiman, presiding over the three judge court, said the court had discussed the matter and believed the stay issue should be determined by a full court.

Pending the outcome of the stay application, to be heard in this court term, an undertaking by the Minister for Health and Children that the risk equalisation scheme will not come into effect will continue.

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Mr Gerard Hogan SC, for the Minister, told the court his side was not opposed to a stay on particular conditions but the VHI was opposed to the stay. He also indicated that the hearing of BUPA's appeal is likely to take up to five days.

Mr Paul Sreenan SC, for BUPA, said his side was anxious for an early appeal hearing.

Since BUPA lost its High Court case, the company has announced its withdrawal from the health insurance market here and it has been acquired by the Sean Quinn group.

The risk equalisation scheme, announced by the Minister for Health last year, would involve BUPA paying a subsidy to VHI to compensate for the VHI having a greater number of high risk, older and more expensive subscribers.

BUPA had claimed the risk equalisation charges would impose liabilities of €161 million on its over three years and that it would be forced out of the Irish market as a result.

When dismissing the BUPA challenge, Mr Justice Liam McKechnie said he accepted the State's evidence that, without such a scheme, there is a threat to the stability of the health insurance market. BUPA had entered the market knowing its regulatory framework, he added.