Just read an opinion by Bill Murdoch in the Irish Times where he states that risk equalisation is fair. Generally I find his opinions to be fairly balanced, but this one just seems like a rant against BUPA and the fact that they do not disclose figures for the Irish market unless they have to. To me, risk equalisation seems unfair, but I maybe I need more information.
The basic principle seems to be that VHI is less profitable than BUPA because the risk profile of its members is higher due to the fact that they are older (on average), and therefore the risk profiles should be equalised through a subsidy payment from BUPA to VHI. (This is where I may be mistaken)-is this because the government/EU have taken the view that private health insurance is a 'public good' and should be made available to the largest number of he population who can reasonably afford it? Or is it to keep the costs of healthcare for the governments of Europe down to a 'manageable' level?
I am a VHI customer (largely by choice, even though my group scheme is VHI, so it is cheaper than BUPA for me), so this isn't necessarily a rant against the VHI, but I would be interested in hearing views/arguments for/against risk equalisation.
The basic principle seems to be that VHI is less profitable than BUPA because the risk profile of its members is higher due to the fact that they are older (on average), and therefore the risk profiles should be equalised through a subsidy payment from BUPA to VHI. (This is where I may be mistaken)-is this because the government/EU have taken the view that private health insurance is a 'public good' and should be made available to the largest number of he population who can reasonably afford it? Or is it to keep the costs of healthcare for the governments of Europe down to a 'manageable' level?
I am a VHI customer (largely by choice, even though my group scheme is VHI, so it is cheaper than BUPA for me), so this isn't necessarily a rant against the VHI, but I would be interested in hearing views/arguments for/against risk equalisation.