Madam, - I am appalled by Bupa's decision to withdraw from the Irish health insurance market. Not only is this an extremely sad day for competition in the market but, more importantly, over 300 people will lose good jobs.
The blame for this lies with Mary Harney and successive Irish governments, as they have consistently pandered to the dominant state institution that is the VHI, while being well aware of the doomsday scenario that could happen were Bupa forced to pay risk equalisation. Yet, as usual, they sat back and did nothing.
It is hard to understand how a State-owned insurer with 1.6 million members could be allowed to demand a €34 million annual payment from a main competitor with only a quarter the number of members.
Bupa has been extremely good for the Irish market. Not only did it offer a very good product at competitive prices, it also caused VHI to wake up from its State-induced slump and start competing with its more enlightened rival. However, thanks to Mary Harney's inaction, we are now back to the dark old days of State monopoly in health insurance. - Yours, etc,
NIALL GILMARTIN, Kildare, Co Kildare.
Madam, - Community rating, where everyone pays the same premium regardless of age or health, needs risk equalisation if there is to be an open market and proper competition. The regulations were well-known to BUPA when it entered the market here, so for it to use them as a reason to withdraw now, having tried to renege on the principle through the courts, is disingenuous. The Irish market was probably a nice little earner until now.
Bupa probably intended to challenge risk equalisation from day one. We should be grateful it failed this time, although I fear that, ultimately, community rating will go. - Yours, etc,
GODFREY SHAW, Blackhorse Avenue, Dublin 7.
Madam, - The most significant issue regarding health insurance in Ireland is demographic: we have an increasing proportion of older people who will need medical care, which is going to cost more. The prevalent expectation - that the State should fund the full cost of this, in a low-tax economy - is no longer realistic.
I look forward to the day when a politician has the courage to state this simple fact. - Yours, etc,
JOHN DAWSON, Limerick.