Political reaction:Taoiseach Bertie Ahern has expressed surprise at Bupa Ireland's decision to quit the Irish market following the High Court's order that it must compensate Voluntary Health Insurance (VHI) for its older customers.
Speaking in Brussels as he arrived for a European Council summit yesterday, Mr Ahern said: "They are a very big slice of the market now, and very profitable. I am a bit surprised that they made that decision. They lost their court case. But my colleagues, the Minister for Finance and the Minister for Health and Children, are looking at this. So we will discuss it then."
Meanwhile, Fine Gael leader Enda Kenny raised Bupa's decision with European Commission president José Manuel Barroso last night when he asked Mr Barroso to examine competition in the Irish health insurance market.
Speaking after a meeting of the European People's Party in Brussels, Mr Kenny said the exit of the second-largest health insurer in Ireland "due to risk equalisation is bad news for consumers, bad news for workers and bad news for competition".
"This decision will have major implications for competition in the Irish market, and for the choice available to Irish consumers, particularly Bupa Ireland's existing [ 475,000] customers.
"In view of the seriousness of this announcement, I met today with the president of the European Commission, José Manuel Barroso, and asked that the commission would investigate this situation as a matter of urgency to establish if a way can be found to implement effective competition in the Irish market.
"This is a regulatory failure. It is a failure by the Fianna Fáil/PD Government to strike a balance between the issues of community rating, risk equalisation and competition in a way which delivers to the Irish people."
The Minister for Enterprise, Trade and Employment, Micheál Martin, said he very much regretted the decision by Bupa Ireland.
"The decision to close a profitable operation is deeply disappointing. The top priority must now be the needs of the workers in Fermoy and elsewhere."
Labour Party spokeswoman on health Liz McManus said she was shocked and surprised at the announcement by Bupa that it was to withdraw from the health insurance market.
She said she hoped that the company would reconsider its decision.
"The loss of so many jobs would be a huge blow to the north Cork area, and the withdrawal of the company would result in the loss of a significant element of competition.
"Bupa is an important employer in the north Cork area, it provides an important element of competition and its Irish operations are extremely profitable."
Green Party health spokesman John Gormley said Bupa's exit left the VHI with an unchallengeable monopoly.
"Under the circumstances it would be most unwise for the VHI to be allowed to privatise."
Sinn Féin health spokesman Caoimhghín Ó Caoláin said the decision by Bupa to pull out of the Irish health insurance market was another symptom of the contradictions in our two-tier health system.
