A legal challenge by Bupa to a risk equalisation scheme which would involve it paying its rival VHI some €35 million a year is to be heard by the High Court before the end of June.
In the interim, the High Court has varied an order made last week which had prevented Minister for Health Mary Harney taking steps, until further order of the court, to implement the scheme.
Under the variation, there is a stay on the collection of any money alleged to be due under any decision that the Minister may make. The matter was adjourned to June 13th after the judge was asked if the court could deal with the dispute as a matter or urgency. It is hoped a date later in June for the full hearing of the action will be fixed then.In the High Court proceedings last week, Mr Justice Frank Clarke granted Bupa leave to bring judicial review proceedings. When the matter came before the court this week, Paul Gallagher SC, for the VHI, said that if the judge's order was not lifted it would effectively mean that €16 million due to the VHI could be nullified.
Unless effect was given to a ministerial decision within 60 days, that recommendation would fall, depriving his client of the money. He said Bupa had entered the market knowing the risk equalisation scheme existed.
Paul Sreenan SC, for Bupa, had told the court that if Ms Harney decided to adopt the scheme to make the sort of demands required - Bupa handing in twice its annual profits to the VHI - then Bupa would have to pull out of the health insurance market in Ireland.