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Health Insurance Prices

Dáil Éireann Debate, Tuesday - 5 November 2013

Tuesday, 5 November 2013

Questions (1195, 1196)

Billy Kelleher

Question:

1195. Deputy Billy Kelleher asked the Minister for Health if, in the interests of transparency and informed public debate, he will publish the report of the Health Insurance Authority on risk equalisation in advance of making a decision on the 2014 health levy; and if he will make a statement on the matter. [46775/13]

View answer

Billy Kelleher

Question:

1196. Deputy Billy Kelleher asked the Minister for Health when he intends to implement the recommendations to alleviate the cost of health insurance for younger members as set out in the Health Insurance Authority Report on Risk Equalisation which he received in 2012; and if he will make a statement on the matter. [46776/13]

View answer

Written answers

I propose to take Questions Nos. 1195 and 1196 together.

Each year, at my request, the Health Insurance Authority (HIA) prepares the Report of The Health Insurance Authority to the Minister for Health, in accordance with Section 7E (1)(b) of the Health Insurance Acts, 1994 – 2012. The Authority submitted its most recent report to me in October 2013. These Reports set out the HIA’s evaluation and analysis of information returns supplied by insurers, their analysis of market issues and, arising from their expert analysis, the Authority's recommendations for Risk Equalisation Credits and associated Stamp Duty to apply for the following year.

In setting the rates for Risk Equalisation Credits, following consultation with the Minister for Finance, I must have regard to the Principal Objective of the Health Insurance Act (as amended), which is to ensure that access to health insurance cover is available to consumers with no differentiation between them, in particular as regards the cost of health services, based on health risk status, age or sex. I must also have regard to the aims of:

- avoiding overcompensation of registered undertakings or former undertakings,

- maintaining the sustainability of the private health insurance market,

- having fair and open competition in the market and

- avoiding the Risk Equalisation Fund having a surplus or deficit from year to year.

In addition to recommendations for Risk Equalisation Credits and associated Stamp Duty, the HIA Report also provides an evaluation and analysis of commercial insurers' returns for the twelve month period of the previous July to June and such other matters that the Authority considers ought to be brought to my attention.

The 2012 Report, to which the Deputy refers, recommended the approach of setting lower stamp duties and credits for non-advanced cover products, compared with advanced cover products, in order to help maintain the attractiveness of these products to younger customers entering the health insurance market and thereby supporting the sustainability of the market. I accepted this recommendation and a lower rate of stamp duty and credits for non-advanced products was introduced with effect from 31 March 2013. My Department will continue to oversee the maintenance of a competitive and sustainable private health insurance market and to monitor developments on an ongoing basis, including the consideration of measures necessary to keep health insurance affordable for younger members, to ensure that the market is regulated appropriately in the transition to a market-based Universal Health Insurance system.

The HIA Reports are very detailed and include substantial market sensitive data. The 2012 Report was published in redacted form on the Department’s website earlier this year. My Department, in conjunction with the HIA, will publish a redacted version of the 2013 Report in due course.

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