Vol. 473 No. 1
13 Mrs. Geoghegan-Quinn asked the Minister for Health if he has reached a conclusion in relation to whether BUPA's plans infringe community rating principles; and if he has received any notification from the VHI of any impending increases in premia. [24719/96]
Limerick East): BUPA Ireland Ltd. launched schemes of insurance on 19 November 1996. These comprise a community rated indemnity scheme known as the essential scheme and age rated cash plans at four different levels.
Under the legislation, I am the regulator of the private health insurance market and I must approach any question which may affect any insurance undertaking in an independent and open minded manner. My concern is the integrity and effectiveness of the legislation enacted, in the interests of the common good, to regulate the health insurance business in this country. I informed the House as recently as 10 December that the principle of community rating is regarded as an essential part of our health insurance system. Accordingly, section 7 of the Health Insurance Act, 1994, prohibits non-community rated health insurance contracts. I will fully uphold the principle of community rating as set out in the 1994 legislation.
The House has previously been advised on 20 November that my Department, as part of its normal regulatory function, was considering in detail the schemes which have been launched by BUPA Ireland Ltd. My Department has now written to BUPA seeking its views on certain issues. I will decide what further action, if any, is warranted in this matter when BUPA responds to this communication. There will be no delay in my determining the issue once I have had an opportunity of considering the response by BUPA to my Department's letter.
The Government welcomes competition in the health insurance market and it will facilitate this to the fullest possible extent within the legislative framework enacted to safeguard and maintain our long established core principles of community rating, open enrolment and lifetime cover.
Under section 3 of the Voluntary Health Insurance (Amendment) Act, 1996 the VHI Board is obliged to give me prior notice of a proposed increase in premiums. I have not received notice from the board of any such impending increase.
