Madam, - Fintan O'Toole's column of July 8th and your Editorial of July 9th, on the status of the VHI, made a number of references to BUPA Ireland that require comment and correction.
Mr O'Toole believes we have not been particularly successful in Ireland. So be it. We are happy to let the fact that 320,000 people (almost 17 per cent of the available market) have put their trust in us speak for itself.
And while the Health Insurance Authority has recently noted that low numbers of people have changed insurers, this ignores the substantial growth in the market since our entry. Over half-a-million people have taken out health insurance for the first time in the past six years.
We are particularly concerned about the comments concerning our selling practices and pricing in the market generally. If Mr O'Toole feels he is paying too much for his health insurance it is not because of any action by BUPA Ireland but rather because he chooses to continue doing so. If, as it seems, he believes our prices are less expensive, he is free to change his insurer and avail of the lower prices. And he can make the change without penalty and without any break in his cover.
We welcome people of all ages and all states of health and would be happy to quote Mr O'Toole for his health insurance needs.
It follows, therefore, that we do not, as alleged, target younger people in high-tech companies. Over 80 per cent of those who have purchased insurance from us have made the decision as individuals.
Our advent to the market has also led to significantly improved benefits and higher standards of service for everyone purchasing health insurance. These include improved maternity benefits, the availability of full cover for heart surgery on all schemes and out-patient cover for health screening and complementary medicine.
We agree with Mr O'Toole when he queries the need for risk equalisation in a fully privatised market - except that he doesn't go far enough: he should query any need for this anti-competitive subsidy to the VHI.
In advocating claim sharing in your Editorial you ignore the fact that VHI is already well compensated for any extra claims costs it may have through the extra revenue per member it is already collecting from its customers, extra revenue they have been collecting for many years. "Risk" in insurance terms is a combination of revenue and cost, yet while advocating cost sharing risk equalisation ignores revenue sharing.
What the Irish health insurance market needs is more competition. It does not need a privatised monopoly being supported by a smaller "not for profit" competitor. The threat of risk equalisation has been an effective deterrent to new entrants. It is time that threat was removed. - Yours, etc.,
SEAN MURRAY, Director of Marketing, BUPA Ireland, Dublin 2.