The delay in the introduction of a risk equalisation scheme (RES) in the health insurance market is costing VHI more than €7.5 million due to it by Bupa, the Supreme Court was told yesterday.
David Barniville SC, for VHI, said VHI would oppose Bupa's application to have a stay on the introduction of the scheme continued pending the outcome of Bupa's appeal against the High Court's rejection of its challenge to the validity of the RES.
He said his side was concerned that there were issues in the case which may lead to matters being referred to the European courts.
This would mean a longer stay and VHI being put out of its entitlements for a considerable time. The VHI was to be the main recipient of some €8 million due under the RES up to June 2006.
Gerard Hogan SC, for Minister for Health Mary Harney, said the Minister was prepared, on certain conditions, to agree to a stay continuing to June 1st.
However, he said the Minister could not on any terms agree to an open-ended stay, perhaps extending for months or years, as that would be unfair to other parties.
The Minister "absolutely reserves" her position after June 1st, and her offer relating to extending the stay to then was to facilitate the hearing of Bupa's appeal.
"The matter is extremely important and extremely urgent."
He was outlining his position when Bupa's proceedings were being mentioned before the Chief Justice, Mr Justice John Murray, with a view to fixing a date for the hearing of Bupa's stay application.
The Chief Justice said that the Supreme Court would hear the Bupa stay application within this court term.
He said a date offered this week had presented problems for counsel. A date for the hearing of Bupa's full appeal, which is expected to last four to five days, would be fixed at a later stage.
He said at issue here was the right to give effect to the decisions of the Oireachtas and Government.
Paul Sreenan SC, for Bupa, said a lot of complex issues required to be addressed in the appeal, including serious and novel issues of EU law not yet considered by the European Court of Justice.
Mr Sreenan also said that if Bupa lost its appeal there was "no question" that it was either unwilling or unable to pay monies due under the risk equalisation scheme.
Since Bupa lost its High Court case, the company has announced its withdrawal from the health insurance market here and it has been acquired by the Sean Quinn group.
