The European Court of First Instance in Luxembourg has dismissed the case taken by BUPA Ireland which challenged the European Commission's approval of the Government's Risk Equalisation Scheme for private health insurance in Ireland.

Commenting on the decision Marian Harkin MEP said:- "In my opinion it is good news for consumers in Ireland because it means that we can continue with our community rating for health insurance. In effect this means that all consumers can access private health insurance regardless of age. If we had lost the community rating schemes this would have meant that the cost of private healthcare would have been prohibitive for many older people while the young fit and healthy people, who represent low risk, would have much cheaper insurance. It is so important that we can keep our community rating scheme".

“BUPA had challenged that the Risk Equalisation Scheme ensures that each insurer would bear the costs of the average market risk profile rather than its own risk profile and essentially this means a transfer of funds form BUPA to VHI.

“The Commission however disagreed and stated that the mechanism of risk equalisation ‘is a necessary and proportionate means of compensating the insurers required to cover, at the same price, all persons living in Ireland’.

"What we have now is a level playing field for all insurers, and this should provide greater compensation in the market without certain sections of the community paying an unacceptably high price. A totally open market would discriminate against older people who are sick and those who are chronically ill. In my opinion, this is a good decision", Marian Harkin MEP concluded.