Ireland's health insurance system was originally a state monopoly with premiums collected by Vhi Healthcare.
The monopoly was later broken, and the British private health insurance company BUPA entered the Irish market and began competing with VHI, generally undercutting it by attracting mostly younger and healthier clients by offering them cheaper coverage.
261 of 2003) with the aim to neutralize more equitably the differences in insurers costs from variations in the health status of their members.
If it is above 10%, the Minister is to sanction the commencement of payments unless, having consulted with the Authority, he determines that to do so would not be in the best overall interests of health insurance consumers.
The company continued with its legal challenge on the issue of community rating and the application of the risk equalization levy.
Some governments use equalization pools to achieve social balance so that the richer regions, with fewer needs for state aid, pay taxes into an equalization pool so that the poorer regions, needing financial assistance, are able to provide the same level of services.