The High Court has ruled that health insurer BUPA must pay the costs of the State, the VHI and the Health Insurance Authority, following its unsuccessful court action against the risk equalisation scheme last year.
Last November, the High Court dismissed the BUPA challenge saying it accepted the State's evidence that without such a risk equalisation scheme, there was a threat to the stability of the health insurance market.
It also concluded that BUPA had entered the market knowing its regulatory framework.
This afternoon, Mr Justice McKechnie ruled that there were no substantial grounds upon which the court could depart from the well established rules regulating costs.
He added that the action taken by BUPA was completely justified but was just not in the public interest.
However, he granted a stay on payment of the costs, pending an appeal on the court's original decision regarding risk equalisation to the Supreme Court.
It is estimated that the costs will run into several million euro.
BUPA to appeal case to Supreme Court
Afterwards, BUPA said it noted the ruling of the High Court on costs, and added that a stay had been granted pending its Supreme Court appeal.
In a statement, it said the effect of the court's original judgment was that since 23 November BUPA Ireland's Risk Equalisation liability has been running at over €1 million a week.
This forced BUPA to announce closure of its business on 14 December 'with great regret'.
The Chief Executive of VHI, Vincent Sheridan, said he was very satisfied with the court's decision.
He said it would have been totally wrong if VHI members had to pay costs of an action taken by BUPA. He described the costs as 'quite substantial'.
