Risk equalisation, according to the Health insurance Authority, is
a process that aims to equitably neutralise differences in insurersâ€™ costs due to variations in the health status of their members. Risk equalisation results in cash transfers from insurers with lower risk members to insurers with higher risk members.
Irish Health Minister, Mary Harney, decided not to trigger the controversial risk equalisation payments in the health insurance market at this time.
According to the IrishHealth.com website:
If risk equalisation had been triggered, BUPA, which has a younger and less high-risk patient profile, would have had to pay the VHI up to 34 million euro in compensation.
BUPA Ireland’s Managing Director Martin Oâ€™Rourke, commenting on the decision recently said:
This is good news for consumers. We have always said that risk equalisation makes competition unviable
As I am a BUPA Ireland member – if this keeps my health insurance costs down, I am happy with this decision!