No quick solution to health insurance anomaly, says Ahern

The Taoiseach has signalled that existing health insurance legislation may not have foreseen circumstances such as the takeover of Bupa Ireland's operation by the Quinn Group and its plans to seek a derogation from risk equalisation payments as a new entrant to the market.

He also indicated that the controversy may continue until after the new Barrington review group looking at the health insurance market reports next month.

Mr Ahern told the Dáil on Tuesday that the Government wanted to see Quinn Direct's proposals and the structure of the new corporate entity.

"We are taking legal advice on how we should handle the position. We have to consider the employment position and take into account Bupa's 400,000 policyholders", he said.

The Taoiseach said the Government would have to see how the new Quinn corporate entity fitted in with existing health insurance legislation.

" It may be outside the scope of the Acts - it may not have been foreseen by them. While that is what it looks like, we cannot be sure until we know the full position."

"For example, we will have to see the application that Quinn Direct will make to the Irish Financial Services Regulatory Authority and the Health Insurance Authority. We cannot be certain until then. We will have to deal with a number of important issues. We discussed the matter earlier today. We have had a number of meetings. The Health Insurance Authority is also examining the issue. We will have to try to make some early decisions on it," he said.

Mr Ahern told Joe Higgins of the Socialist Party that the Government would also have to take account of the position of the VHI, which, he said, "expects to receive resources from the private health insurance operators under existing legislation which did not envisage the circumstances which have arisen".

"We have to resolve some issues relating to the Health Insurance Act. The Attorney General is examining the matter and we are getting some outside advice. I do not think we can resolve the matter before the ongoing work of the Barrington group has been completed. We need to examine precisely how Quinn Direct intends to compose its corporate entity. We have to deal with such issues and will do so. I do not think the matter can be dealt with in the next day or two. I do not want somebody to think it can be resolved tomorrow," he said.