Dáil Éireann Debate, Thursday - 20 February 2014
226. Deputy Michael McGrath asked the Minister for Health when the VHI will be recapitalised; his views on whether changes to tax relief on medical insurance will result in an increased capital requirement; and if he will make a statement on the matter. [8836/14]
View answerThe Government has committed itself to continuing the work towards authorising the VHI as soon as possible. The aim is to have VHI authorised by end 2014, if the Central Bank so decides. The VHI Board has committed to this approach.
VHI has indicated that it will seek to self-fund any capital requirements, meaning that, if successful, no Exchequer funding would be required. This approach takes account of the recent changes to the tax relief for medical insurance. VHI's readiness for authorisation and the exact capital requirements for authorisation will be determined by the Central Bank as part of its assessment of VHI’s application. Officials from my Department, the VHI and CBI continue to engage regularly to progress the application.
