HSF Health Plan, a not-for-profit health cash plan operator, has bought the Irish business of rival HSA, for an undisclosed sum.
HSF Health Plan currently has over 100,000 Irish customers and provides a cash sum for claims for everyday medical costs, including routine GP, dental and optical visits, hospital visits, complementary medicine and personal injury.
HSA is part of the Simplyhealth Group and had operated a health plan business in Ireland since 1993 and has around 30,000 customers.
According to HSF Health Plan's CEO, Keith Bradley, the move strengthens the organisation's not-for-profit ethos. "We will work closely with HSA over the coming months to ensure that all customers' needs are serviced with the minimum disruption. All HSA customers will continue to be covered by their existing policy, which will be transferred over to HSF systems and customer services."
The exit from Ireland of HSA is not unexpected. It had hoped to enter the Irish PMI market and had got as far as a licence. But the weird and wonderful system where the dominant market player is subsidised by all its competitors for huge sums, the very reason Bupa left Ireland, is what made the company feel it could never make a profit there. The selling of the small health cash subsidiary is very much a tidying up exercise.
Health cash plans: News update: May 2008