Health insurer Bupa Ireland is making a last-ditch effort to stop risk equalisation payments of some €35 million to the VHI by urging its 410,000 customers to protest about the system to the office of the Tánaiste and Minster for Health, Mary Harney.
Ms Harney is set to begin the scheme next Monday, forcing Bupa to pay some €35 million per year to the State-owned insurer and to a smaller scheme for ESB staff to compensate them for the higher age profile of their customers.
Bupa said in letters to its commercial customers that the scheme "would require us to charge your company more every year and pay this money to the VHI and the ESB".
The company has threatened to leave the Irish market over the scheme and has initiated a High Court action to prevent it being activated. The payments will not be levied while the case is being heard.
But assuming Ms Harney goes ahead with her stated intention of beginning the scheme, Bupa's liabilities to the VHI will date from the start of next month.
One Fianna Fáil TD said in private yesterday that he had received a circular on risk equalisation from Bupa in which the company outlined its stance. He said he believed certain TDs in the Progressive Democrats and the Opposition parties received the same circular.
The letters sent to each of Bupa's commercial and personal customers were signed by Bupa managing director Martin O'Rourke. A letter to a major Irish company which has a business relationship with the insurer said that only Bupa customers would have to pay the risk equalisation charges.
"Is there anything you can do about this?" it said.
"The Minister will make her final decision very shortly and we would like to let you know we are currently writing to all our members individually asking them for their support. If you wish to protest you could contact her office at the Department of Health and make your views known."
As an alternative, Mr O'Rourke suggested that Bupa customers could make their views known to him by contacting an email address, an 1890 phone number or by sending a text message to a mobile phone number. "I will pass on your views."
Mr O'Rourke began the letter by saying he was writing in response to enquiries and offers of help that the company had received from many of its customers. "We are continuing to fight this unjust charge through the courts and we greatly appreciate all of your expressions of support."
At its biennial conference in Belfast this week, Ictu passed an emergency motion urging Ms Harney to proceed with the scheme.
"Conference recognises that policy governing the health insurance market in the Republic has been based on the principle of community rating, which means that everyone pays the same premium irrespective of their age or health status," said the Amicus-sponsored motion.
