MEDICAL COST insurer HSF Health Plan has acquired the Irish business of rival HSA Healthplan for an undisclosed sum.

The registered charity, owned by the Hampshire-based Hospital Saturday Fund, provides cover to 100,000 people for GP, dental, optician and hospital-visit-related costs in the Republic.

Following its acquisition of HSA from the UK's Simplyhealth Group, the combined entity will provide cover for up to 130,000.

HSF, which has operated in Ireland since 1949, last year collected £20 million (€25 million) in premiums from customers in Britain and Ireland, about one-third of which came from the Republic.

HSF paid out about £14 million to 170,000 claimants - representing 80 per cent of all claims - for non-hospital costs in Britain and Ireland last year.

Surplus funds are returned to the community. HSF has set aside €535,000 for donations and grants to medical charities, hospices and hospitals in Ireland and Britain this year.

Chief executive Keith Bradley yesterday said he could not confirm how much of the so-called "health cash plan" market in Ireland would be controlled by the new entity. However, the merger would create the Republic's largest "pure" health cash plan provider. While medical insurers such as VHI, Vivas and Bupa have provided similar products in recent years, this has been part of wider health insurance products, he said.

The merger does not include HSA's other businesses in the UK, which will continue to be run by the Simplyhealth Group.