NEGOTIATIONS between BUPA Ireland and the Department of Health will be held this week to discuss the controversial "cash plans" BUPA is offering. BUPA argues that the plans, are not in conflict with community rating.
It has been revealed that the first official contact between BUPA Ireland and the Department of Health came on the day the health insurers announced their products for the Irish market.
BUPA briefed Department officials on November 19th, the day its products were announced. Prior to that, according to sources, "the Department did not ask and BUPA did not offer".
A spokeswoman for BUPA said that after making contact with the Department on November 19th the company understood its products would be reviewed and that there would be discussions. Three weeks later the company received a letter from the Department expressing concern about its products and seeking clarification.
BUPA believes it had no requirement to brief the Department - which it sees as both regulator and competitor - before launching its products. It had informed officials of its intention to trade in Ireland last April.
Meanwhile, the VHI has drawn up a new shortlist of candidates for the position of chief executive. Negotiations with the chief executive of the Midland Health Board, Mr Denis Doherty, were understood to be "very far advanced" when he received an offer from the Department of Health. Mr Doherty is believed to have been offered a very attractive financial package to stay within the health services in a dual role.
The troubled VHI has been without a chief executive since the departure of Mr Brian Duncan three months ago. The chairman, Mr Noel Hanlon, is due to retire at the end of February.
In a statement yesterday the VHI said that BUPA was continuing to market health insurance products which discriminated against older people and were designed to destroy community rating.
The BUPA spokeswoman denied this, saying that the company had "complied fully with the spirit of community rating" and was offering a very fair, affordable product, providing flexibility and more choice.