asked the Minister for Health if he has refused foreign health insurance organisations access to the Irish market; if the Government will be seeking a derogation from the concept of open competition in health insurance at EC level in the context of 1992 and the subsequent deregulation; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Health Insurance.
63.
It has been the policy of successive governments to restrict licences issued under the Voluntary Health Insurance Act, 1957, to small schemes associated with particular firms or organisations. The basis of this restriction has been the desire to protect VHI's "community-rating" approach, under which older age groups and other higher risk categories of subscriber can avail of insurance cover on the same terms as the rest of the population.
Deputies will be aware that I appointed a consultant to examine all aspects of the VHI board's operation, taking particular account of the implications of the completion of the internal market in 1992. The question of VHI's monopoly status, and of whether it is necessary to seek an exemption from European Community legislation, will be considered by the Government in the light of the consultant's report.
Does the Minister favour VHI monopoly in relation to health insurance in this country in the years ahead and will he confirm that recent applications made by PPP in this regard were refused by his Department?
Yes, applications were refused by my Department. I have an open mind on competition but I am anxious to ensure that community rating would be available to all people. I would not like to see a situation develop whereby an insurance company would come in and sell health insurance but exclude everybody who is vulnerable. This would put an intolerable burden on the Voluntary Health Insurance Board and they would probably not be able to deliver a service.
I want to deal with Question No. 64.
Can I ask a final supplementary?
A very brief question; we have three questions to deal with yet.
I share the Minister's view that those under 50 years of age should not be given cheaper insurance so that the VHI would be left with the lame ducks in terms of people who are more likely to claim. Therefore, I should like to ask the Minister if he has any proposals to seek a derogation at EC level up to 1996?
As I have already pointed out to the Deputy in answer to his question, I appointed Noel Fox, consultant, to look at the Voluntary Health Insurance Board both in the context of their current operations and to report to me by the end of this year in relation to 1992. In fact, his terms of reference in regard to 1992 were to report on the entire range of functions performed by the VHI and the extent to which these would require modification in the light of possible competition from other European health insurance companies in a free market situation from 1992 onwards. When I receive the consultant's report at the end of the year I will look at it and make whatever recommendations I consider necessary.