Health Insurance Levy

Dáil Éireann Debate, Tuesday - 19 November 2013

Tuesday, 19 November 2013

Questions (681)

Seán Ó Fearghaíl

Question:

681. Deputy Seán Ó Fearghaíl asked the Minister for Health the specific factors that caused him to increase the risk equalisation levy on health insurance that he announced on 12 November; and if he will make a statement on the matter. [49340/13]

Written answers

Minister for Health

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 private health insurance cover is available to everyone and they are charged the same premium for a particular health insurance plan, irrespective of age, gender and the current or likely future state of their health. 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.

Having examined the HIA report and considered the views of my Department's Officials and its actuarial advisors, which includes other relevant market factors, I announced changes to the risk equalisation credits that will apply in the private health insurance market with effect from 1st March next. My Department, in consultation with the HIA, will publish a redacted version of the Report in due course.