Dáil Éireann debate -
Thursday, 8 May 2003

Vol. 566 No. 2

Written Answers. - Private Health Insurance.

Bernard Allen

Question:

168 Mr. Allen asked the Minister for Health and Children if he will make a statement on the situation where the Health Insurance Authority is still awaiting a response from his Department on proposals to introduce a late entry loading on older people taking up private health insurance. [12566/03]

Minister for Health and Children (Mr. Martin):

Health insurance legislation contains provision for the introduction of a system of lifetime community rating, which will involve allowing health insurers to apply late entry premium loadings to persons who take out insurance cover at or after the age of 35 years. While my Department has obtained the views of the Health Insurance Authority in relation to lifetime community rating, work on preparing regulations to implement such a system must be viewed in the context of wider considerations relating to maintaining the established common good principles of our private health insurance system. These principles relate to community rating, open enrolment and lifetime cover.

Risk equalisation is a necessary support to sustaining community rating across the insured population. A draft risk equalisation scheme is currently being considered by the European Commission's Competition Directorate General on foot of a complaint it received that the scheme would constitute an illegal State aid. I expect to have the Commission's decision in that regard soon.

Once the fundamental matter of providing for risk equalisation in order to sustain community rating has been resolved, the Health Insurance Authority's views on the matter of lifetime community rating will be taken into account in the context of progressing arrangements for the introduction of such a system.