HEALTH insurer WPA has settled its differences with Health and Social Services and paid about £300,000 in outstanding fees.

WPA announced in October that it was refusing to pay after what it deemed as ‘unacceptable’ private patient price hikes.

It said the HSSD was using patients as ‘cash cows’, adding that the change in the way bills were calculated amounted to a 23% increase on 2008.

HSSD threatened the insurer with legal action and gave a two-week ultimatum for the account to be settled. But that threat has now been dropped after the two sides came to an agreement.

‘WPA has accepted the HSSD’s rates of charge for 2009 and bills are being paid,’ a department spokesman said.

WPA corporate communications director Charlie MacEwan (pictured) said the insurer always intended to pay the outstanding amount.

‘That was not the issue,’ he said. ‘We were very happy to pay, it was just about the terms of the increases.’