Dáil Éireann debate -
Wednesday, 3 Oct 2001

Vol. 541 No. 2

Written Answers. - Health Insurance.

Bernard J. Durkan

Question:

552 Mr. Durkan asked the Minister for Health and Children the position regarding the Health Insurance (Amendment) Act, 2001; the likely impact this Act will have on private health insurance companies if community rating will continue; and if he will make a statement on the matter. [22041/01]

Minister for Health and Children (Mr. Martin):

Arrangements are currently being made to commence certain sections of the Health Insurance (Amendment) Act, 2001. Other sections, including those relating to risk equalisation and lifetime community rating, will be commenced in due course. Regarding the implementation of some provisions of the Act, I would point out that proposed regulations to be made thereunder require affirmation by the Houses of the Oireachtas.

Since the passing of the Health Insurance Act, 1994, and the introduction of the related regulations in March 1996, there has been a legal requirement for private health insurance companies to offer insurance cover on the basis of community rating, lifetime cover and open enrolment. That Act also provided for the introduction of a risk equalisation scheme among insurers operating in the market. The 2001 Act retains and enhances the provisions of the 1994 Act in relation to the application of community rating. The regulations to be introduced relating to risk equalisation and lifetime community rating will support the continuation of community rating.

Having regard to our obligations under EU law, proportionality is required in relation to measures to protect the common good in the conduct of health insurance business. In this connection, the proposed risk equalisation scheme, which will incorporate a significant role for the independent statutory Health Insurance Authority in relation to any commencement of transfers and the level of same, will have regard to the application of community rating across the market and facilitating competition among insurers. As regards the impact on private health insurers, the legislation will provide an appropriate regulatory framework, intended to strike an effective balance between the facilitation of competition and the maintenance of core principles which characterise the operation of voluntary private health insurance here.