Health insurer BUPA pulls the plug
on Irish operations
Private health insurer BUPA said it has been left with no option but
to pull out of the Irish market.
Irish people may now face a steeper hike in health insurance premiums
in the wake of BUPA’s shock decision.
An intense battle is set to get under way between the two remaining
private health insurers in Ireland — VHI and VIVAS — to woo
BUPA’s 475,000 customers.
BUPA has put its 300 staff, based mainly in Fermoy, Co. Cork, under
at-risk notice. It is expected to be the end of 2008 before all its operations
are wound down and staff will be gradually let go.
Chief executive Martin O’Rourke said: “For anyone who is
in hospital or about to arrange medical treatment, they remain covered.
Members will continue to be provided with a quality service until all
contracts have expired and claims are settled.”
The decision to leave followed the recent High Court ruling which upheld
the government’s decision to introduce risk equalisation. BUPA said
this would see it pay £107.8million to VHI over three years.
The scheme, designed to compensate VHI for having a higher proportion
of older members, is costing BUPA £0.7million a week.
Although BUPA is leaving the market a spokesman said it would still
have to pay VHI in the region of £37.5million over the next two
years under the scheme.
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