The High Court has upheld the controversial risk equalisation scheme in health insurance funding.
The ruling means that the private insurer BUPA will have to pay the State-owned VHI compensation because of its younger client base.
BUPA has previously said that it the High Court ruled against it, it would have to pull out of the Irish market. It said that the ruling could mean it would have to pay €161m to the VHI over the next three years.
The High Court judgement ran to about 200 pages. BUPA managing director Martin O'Rourke said in an initial comment that the consumer had lost today.
'The elimination of meaningful competition is now avoidable only through Government intervention,' he said, adding that BUPA had sought an immediate meeting with the Health Minister. He said members' contracts were not affected.
VHI described the ruling as 'a powerful endorsement of the need for risk equalisation to support community rating. This ensures that private health insurance is offered at the same price to the young and the old and therefore remains affordable to all who wish to avail of it.'
