Seán Barrett
Question:59 Mr. S. Barrett asked the Minister for Health whether his Department are now in a position to license health insurers other than the VHI; and if he will make a statement on the matter.
Written Answers. - Health Insurance.
Brendan Howlin
Question:69 Mr. Howlin asked the Minister for Health if he is committed to the principle of community-rated health insurance premia; the action he proposes, if any, to ensure that all individuals not covered by the GMS are able to avail of affordable health cover; and if he will make a statement on the matter.
Madeleine Taylor-Quinn
Question:99 Mrs. Taylor-Quinn asked the Minister for Health the plans he has for the development of Voluntary Health Insurance Board services in the light of changing EC legislation in relation to insurance.
Phil Hogan
Question:141 Mr. Hogan asked the Minister for Health if he has satisfied himself that the Voluntary Health Board have the capacity to remain financially viable following the completion of the internal market; and if he will make a statement on the matter.
I propose to take Questions Nos. 59, 69, 99 and 141 together.
I consider the availability of community rated type health insurance exclusively, with open enrolment and lifetime cover, to be essential to maintaining the appropriate balance between public and private health care, on which the successful operation of the Irish health services depends. This is the approach adopted by my Department in relation to the EC Third Directive on Non-Life Insurance, which seeks to open up the insurance market, including health insurance, throughout the Community.
I can confirm that the text of the EC Third Directive on Non-Life Insurance which was adopted by the Council of Ministers in February 1992, will permit insurers from throughout the EC to enter the Irish health insurance market, if they so wish. Health insurers entering the Irish market will no longer require a licence to do so from my Department. However, the Directive also permits member states to impose certain restrictions on insurers operating within their territories. Under this provision it is proposed to restrict the Irish health insurance market to schemes of health insurance that comply with the principle of community rating, with open enrolment and life-time cover.
The Voluntary Health Insurance Board have always operated on the community rating principle and foresee no great difficulties, either technically or financially, arising out of the provisions of the Directive. In view of the fact that the Directives, as passed by the Council of Ministers, permit us to maintain community rating and to protect our existing health care structure, no derogation from the provisions of the Directive has been sought.
It will be necessary to enact legislation to regulate the future provision of private health insurance in accordance with the Directive and to make certain other amendments in the current legislation. This legislation must be enacted in sufficient time to allow all the new arrangements to be in place not later than July 1994. It will, therefore, be possible for the House to consider all aspects of private health insurance during the passage of the proposed legislation.
Subject to certain limitations, persons not covered under the GMS scheme can obtain affordable insurance cover against out-patient services, including general practitioner fees, from the Voluntary Health Insurance Board. Assistance with inordinate expenditure on drugs and medicines is available under the long term illness scheme, the drug cost subsidisation scheme and the refund of drugs scheme. In addition, income tax relief is available on health insurance premia and on certain medical expenses, including drug and medicine costs.