Statement by the Minister for Health following Bupa Judgement

The Minister for Health, Dr James Reilly T.D., today, (Thursday 7th March) welcomed the decision of the High Court to dismiss entirely the case taken by BUPA against Ireland for a claim of damages, arising from the Supreme Court decision of July 2008 concerning the Risk Equalisation Scheme 2003.

Commenting on today’s Court decision, the Minister said:

“Since BUPA decided to leave the market of their own free will, it would have been completely unjustified to penalise Irish tax payers by seeking damages from the State for their decision. The judgement rejects the BUPA case in its entirety and determined that no liability arose under Irish or European law.

The Government’s objective in health insurance has always been that it should be affordable for older and sicker people. I am strongly committed to protecting the principle of community rating in the private health insurance market, whereby the level of risk that a particular consumer poses to an insurer does not directly affect the premium paid. The risk equalisation scheme (RES) is the financial mechanism to support community rating.

I am pleased, therefore, that the judgement of the High Court in this matter supports the justification for a risk equalisation scheme and the principle of community rating in the private health insurance market. The Government remains fully committed to maintaining a stable and sustainable health insurance market and the recent introduction of a permanent RES, with effect from 1 January 2013, will continue the objective of making health insurance more affordable for older people. I would also point out that the principles of community rating and intergenerational solidarity are core societal values which the Oireachtas has repeatedly supported”.

The Minister finished by saying that the judgement fully endorses the introduction of a permanent Risk Equalisation Scheme in the Irish market, as legislated for by this Government with effect from 1 January 2013.”