Risk Equalisation in Health Insurance and the New Standard for Public Service Compensation in the Context of State Aid and Services of General Economic Interest Under EU Law

12 Pages Posted: 3 Dec 2008

See all articles by Wolf Sauter

Wolf Sauter

Vrije Universiteit Amsterdam - Faculty of Law; Tilburg Law and Economics Center (TILEC); Netherlands Authority for Consumers and Markets (ACM)

Date Written: November 1, 2008

Abstract

In its BUPA Case of February 2008 the Court of First Instance set a new standard for assessing whether public service compensation constitutes a state aid and/or is covered by the exception for services of general economic interest. At issue was risk equalisation between providers of private health insurance in Ireland. The alternative standard adopted in BUPA is less rigid than that in Altmark and therefore in principle to be welcomed also because it seems more suited to services provided in competition and therefore to new ways of providing public services. This means it contains elements of a new approach toward national attempts at reshaping the welfare state in EU law terms. However too much discretion was given to the national authorities and the Court of First Instance did not sufficiently address the conditions of competition in the relevant Irish markets in this case, making it on these counts a false start.

Keywords: Risk equalisation, risk adjustment, healthcare, health insurance, state aid, services of general economic interest, Court of First Instance.

JEL Classification: I18, K23, K32

Suggested Citation

Sauter, Wolf and Sauter, Wolf, Risk Equalisation in Health Insurance and the New Standard for Public Service Compensation in the Context of State Aid and Services of General Economic Interest Under EU Law (November 1, 2008). TILEC Discussion Paper No. 2008-042, Available at SSRN: https://ssrn.com/abstract=1310673 or http://dx.doi.org/10.2139/ssrn.1310673

Wolf Sauter (Contact Author)

Vrije Universiteit Amsterdam - Faculty of Law ( email )

Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Netherlands Authority for Consumers and Markets (ACM) ( email )

PO Box 16326
2500 BH The Hague
Netherlands

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