Dáil Éireann Debate, Wednesday - 13 November 2013
186. Deputy Bernard J. Durkan asked the Minister for Health if any particular study has been done into the increases in private health insurance over the past number of years in view of the fact that increased competition in the area was supposed to benefit the consumer; and if he will make a statement on the matter. [48544/13]
View answerThe Health Insurance Authority, the independent statutory regulator of the private health insurance market in Ireland, provides advice to my Department on an ongoing basis. The data available on the private health insurance market in recent years shows a number of factors which are affecting private health insurance costs. The reduction in the numbers holding private health insurance, the age profile of those holding private health insurance, increases in claims costs, increases in premiums, and the overall state of the economy are all having an impact on the private health insurance market and its sustainability.
I am determined to address rising costs in the private health insurance sector in the interests of consumers. I want insurers to address their base costs, and have made it clear to insurers that I believe significant savings can be made, ultimately reducing the impact of rising health costs on health insurance premiums for the consumer. Last year I established the Consultative Forum on Health Insurance, comprising representatives from the private health insurance companies, my Department, and the Health Insurance Authority, to generate ideas to address health insurance costs. I appointed an independent Chairperson Mr. Pat McLoughlin who is working with my Department and the insurers under the auspices of the Forum on a review process to give effect to real cost reductions in the private health insurance market and I expect to receive his initial report shortly.
While competition is evident in the Irish private health insurance market, insurers have concentrated on competing for younger lives. Competition in a community rated health insurance system needs to be supported by risk equalisation, a mechanism to distribute fairly some of the differences that arise in insurers' costs due to the differing health status of all their customers. There has been a history of challenges to risk equalisation in Ireland, with the original risk equalisation scheme struck down in 2008. A temporary scheme was introduced in 2009, which I greatly improved in 2012 and I also put in place a permanent scheme of risk equalisation for the first time in 2013. There is a need to continue developing risk equalisation in order to protect the health insurance market and to ensure competition is on the basis of service and quality, not risk profile and I encourage insurers to compete actively to insure all lives.
