Dáil Éireann Debate, Wednesday - 14 December 2011
280 Deputy Michael McGrath asked the Minister for Health the timeline for the injection of funds into the VHI and the potential impact on this arising from the proposed changes to the charging for public beds used by private patients in public hospitals. [40235/11]
View answerThe amount of capital reserves required by the VHI would fall to be determined by the Central Bank of Ireland (CBI) in the context of its role under the European Communities (Non-Life Insurance) Framework Regulations, 1994. In assessing an application for authorisation by an insurer, the CBI takes account of the three year business plan submitted, using optimistic, realistic and pessimistic scenarios. It is not possible at this point to give a figure or timeline for addressing VHI's capital shortfall. However, any increase in claims costs will have an impact on the company's business plan and will be taken into consideration by the CBI in arriving at a capital figure. It is important to note that given the current structure of the market, this will be mitigated by the level of transfers which will arise under the scheme of risk equalisation to be put in place from 2013 onwards.
I have made it clear that I expect the VHI to now take further steps to address claims costs and a process of examining those costs in detail is about to begin.
