The High Court has ruled that the Voluntary Health Insurance Board should no longer participate as a notice party in the remaining parts of BUPA Ireland's challenge to Ireland's health insurance risk equalisation arrangements.
BUPA began judicial review proceedings after the Health Insurance Authority recommended on April 29, 2005 that the Minister for Health and Children should commence risk equalisation payments. VHI was subsequently joined to the proceedings because of its position in the health insurance market and its substantial interest in payments that could arise under the scheme.
The position changed after the Minister indicated that she did not intend, at that time, to act on the Authority's recommendation. As a result, the judicial review challenge to that particular recommendation became moot. BUPA continued, however, with constitutional and EU law challenges concerning section 12 of the Health Insurance Act 1994 and the Risk Equalisation Scheme.
BUPA then asked the High Court to discharge VHI from the case. It argued that VHI's participation had been justified by the original judicial review dispute but was unnecessary once the proceedings were reduced to challenges to the legislation itself.
VHI opposed removal. It argued that it had a unique financial interest because it was, for practical purposes, the principal beneficiary of the scheme and that BUPA's pleadings included assertions concerning VHI's position and conduct.
Mr Justice Peart accepted that VHI could be significantly affected financially if BUPA succeeded. However, he held that this interest did not make VHI's participation necessary for the court to fully decide the constitutional and EU law issues.
The judge said the Attorney General would defend the legislation on behalf of the State and public interest, rather than on behalf of VHI. A private party does not acquire a right to participate in a constitutional challenge simply because the outcome may affect it commercially.
The court therefore directed that the remaining proceedings continue between BUPA and the relevant State respondents, with further directions on pleadings and the form of the order to follow.