Reaction: MARY HARNEYMinister for Health Mary Harney last night welcomed the judgment, which she said endorsed the principles underlying the private health insurance market in Ireland.
She said that she would study the written judgment when available and assess it with the advice of the Attorney General.
"The Government's policy is that health insurance cover should be available to people of all ages without price discrimination, that is, the market should be community-rated. Risk equalisation supports this principle."
She intended to introduce measures to remove several distortions in the market that operated in favour of VHI. These included legislation to place VHI on a commercial footing. VHI in future will also have to meet the same solvency requirements as other health insurers in the market.
• LIZ McMANUS:Labour Party spokesperson on health Liz McManus said that yesterday's ruling was an important decision that should ensure a fairer deal for consumers and a level playing pitch for insurance providers.
She said that without risk equalisation, new entrants to the market would simply cherry-pick young customers with a view to maximising their profits.
"Failure to ensure that risk equalisation is now fully implemented would mean that VHI would have to continue to carry a disproportionate share of the burden and would probably mean increased premiums for most members.
"I am sure that Bupa will be disappointed with the outcome of their court challenge, but I hope that the company will not go ahead with its threat to leave the Irish market," Ms McManus said.
• BUPA IRELAND:Bupa Ireland chief executive Martin O'Rourke said that yesterday's judgment represented a very bad day for Irish consumers and a dark day for his company.
"We have always maintained that risk equalisation makes competition unviable. This remains the case and indeed the judge has acknowledged that we cannot operate under RES without incurring a loss.
"The elimination of meaningful competition is now avoidable only through Government intervention and we have sought an immediate meeting with the Minister to protect competition for consumers," he said.
In the meantime members' contracts were not affected and they did not need to take any action.
• VHI:VHI said that the court ruling was good news for health consumers and would encourage real and vigorous competition in the private health insurance market.
It said that its competitors would be forced by the decision to compete right across the market and become more innovative in terms of cost, product customer service and provider management.
"The court decision was an unambiguous finding that community rating is in the public interest. It was also a powerful endorsement of the need for risk equalisation to support community rating," it stated.
• VIVAS:Vivas Health chief executive Oliver Tattan said that the ruling would have detrimental repercussions for the health insurance sector, lessen competition in the market and ultimately be bad for consumers.
Vivas called on EU Commissioner for the Internal Market Charlie McCreevy to intervene urgently "to end the current VHI protectionist regime".
