The White Paper on Private Health Insurance set out the Government's proposals regarding the corporate status of the Voluntary Health Insurance Board. This provided for the establishment of the VHI as a company under the Companies Acts, with full commercial freedom of operation, in the ownership of the Minister for Finance. It also provided for a "once-off" financial injection to facilitate the restructuring of VHI and to enable VHI be considered for authorisation as an insurance company. The Government has not, to date, made such a capital injection. The possibility of third party investment and eventual full sale of the State's interest in VHI, if deemed desirable by the Government, were also addressed in the White Paper.
Further to the White Paper, corporate financial and legal advisers were engaged to examine the strategic options for the VHI and they have reported. The advice provided by the consultants, including that relating to the matter of a financial injection, is currently under consideration.
It remains Government policy to proceed with changes to the corporate status of the VHI within the range of possibilities set out in the White Paper. The Government will determine how this may be best progressed in the context of its consideration of the consultant advice obtained. Ultimately, proposals by the Government for a change in VHI's corporate status will require legislation and will therefore arise for consideration and discussion in the Houses of the Oireachtas.
