Minister for Health Mary Harney has indicated she has yet to form an opinion on whether Quinn Group should take the benefit of a three-year exemption from risk- equalisation payments to VHI after its takeover of Bupa Ireland.
Resisting demands from VHI for an immediate intervention, the Minister is to await a determination on the issue by the Health Insurance Authority, which regulates the market. Ms Harney's spokesman said she would take "all appropriate advice on the issue" following the authority's determination.
The authority has not yet received an application for a licence to provide health insurance from Quinn Group, which insists it is entitled to an exemption "as a new health insurer".
Quinn Group's spokesman said only that it was "confident of getting through the regulatory process" when asked yesterday whether the deal would go ahead if it did not receive an exemption from risk equalisation. VHI, which stands to lose tens of millions of euros annually if the exemption is granted, said Ms Harney should immediately make clear that Bupa's book will remain subject to risk equalisation.
The State-owned insurer also said she should consider introducing amending legislation to ensure such an outcome. Ms Harney did not respond directly to such demands, but she left the door open for the introduction of new legislation to close any legal loophole.
"Clearly if there is a gap in the legislation, that will be rectified, but I await the advice of the Health Insurance Authority and legal advice from the Attorney General."
