Vol. 421 No. 5
37 Mr. Gilmore asked the Minister for Health if he will outline the proposals he has for any change in the role of the VHI, especially in view of (1) the commitment given in the Programme for Economic and Social Progress to extend eligibility for free hospital care to all and (2) the enactment of the Health (Amendment) Act, 1991; and if he will make a statement on the matter.
There is no change in the role of the VHI arising from the enactment of the Health (Amendment) Act, 1991. There has not been any reduction in VHI membership since the enactment of this legislation and the Board does not anticipate any such reduction.
Following on from the adoption by the Council of Ministers earlier this year of the EC Third Directive on Non Life Insurance it will be necessary to introduce legislation here to liberalise the non-life insurance market including health insurance. The legislation on health insurance will allow for competition but insurers who wish to enter the market here must do so on the existing community rating basis. The VHI will, under the new arrangements, continue to be a vital part of the overall structure of the health services particularly in maintaining a balance between public and private care. The Government in the Programme for Economic and Social Progress has recognised the important role of voluntary health insurance and does not wish its contribution to be diminished in any way.
