Risk Equalisation thrown out of Supreme Court

EvotingMachine0197 wrote:So does this mean Sean Quinn does not have to pay the 130 million to VHI or whatever.

cookiemonster wrote:I bet Bupa are feckin ragin now! 

By Caroline O’Doherty
HEALTH Minister Mary Harney is under fire again over plans to call in consultants to help with the health insurance fiasco.


The minister pleaded for time to consult the attorney-general and her officials after the Supreme Court last week quashed the laws on community rating and risk equalisation that would have compelled insurers to charge all customers equally.

She has now advertised for external “actuarial/insurance advisory services” to provide “expert assistance, advice and information” on private health insurance.


A spokeswoman insisted it was a repeat contract and had nothing to do with the court ruling.

But questions were raised about the move given that Ms Harney already has the Health Insurance Authority to advise her, along with the Government’s legal advisers and departmental experts.

Labour spokeswoman on health Jan O’Sullivan said she was surprised at the advertisement in circumstances where health services were strapped for cash and all departments were supposed to be cutting their use of consultants by half.

“There appears to be duplication here. I would have thought that the AG and the other experts the minister has available to her would have been enough.”

Fine Gael health spokesman Dr James Reilly asked how the minister could justify spending on outside consultants when patients were suffering cutbacks. “Is she saying she doesn’t trust the Health Insurance Authority to tell her whether her policies will fly or not? If so, why appoint them?”

Ms Harney’s spokeswoman said she was obliged by law to seek actuarial expertise to advise her on risk equalisation. However, the tender refers to the entire operation of the private health insurance industry, the review of the community rating rules, future developments in the market and “consideration of insurance issues generally”.

No value for the contract has been disclosed but the “cheapest wins” criteria does not apply.

Ms O’Sullivan said the money would be better spent asking consultants to draw up a plan for universal health insurance.

“Community rating is important but it only protects half the population. It leaves out the half who don’t have private health insurance.”