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.
It is estimated that the costs will run into several million euro.
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, BUPA said the effect of the court's orginal judgement was that since 23 November BUPA Ireland's risk equalisation liability has been runing at over €1m a week, and this forced the company to announce closure of its business on 14 December 2006.
Afterwards 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.
