Dáil Éireann Debate, Wednesday - 25 June 2014
48. Deputy Robert Troy asked the Minister for Health his response to the latest HIA figures showing that the private health insurance market is continuing to decline; and if he will make a statement on the matter. [27072/14]
View answerThe latest figures from the HIA show that 2,031,000 people, or 44.2% of the population is currently insured with inpatient health insurance plans. I am keen to create the best possible environment within which more people will want to obtain and retain private health insurance cover that is affordable, competitive and meets costumers' needs as we prepare to move towards Universal Health Insurance. With this in mind, I am introducing a series of measures from 2015 including Lifetime Community Rating (LCR) and discounts for young adults to help support the sustainability and competitiveness of the Private Health Insurance market.
As part of the Consultative Forum on Health Insurance, I appointed Mr. Pat McLoughlin as Independent Chair to work with insurance companies and the Department to identify effective cost management strategies to help ensure the long-term sustainability of the private health insurance market. Mr. McLoughlin's first report, published at the end of December, made a number of important recommendations, including the introduction of LCR as a measure to encourage younger people to buy health insurance. Lifetime Community Rating is intended to encourage people to join health insurance schemes early and to retain their private health insurance cover. Late entry loadings are applied to those who join later in life. There will be a grace period to allow people take out insurance without loadings and a strong communications campaign to give everyone adequate notice of the change.
I also wish to help address the substantial reduction in the market penetration rates between the ages of 20 and 25 by requiring sliding discounts for all young adults up to age 24. It is intended that this measure will also be introduced from 2015. This phasing in of full adult rates will smoothen the dramatic price increase currently experienced when student rates no longer apply, usually after the age of 21 years at present.
In addition to the above measures, I have consistently emphasised the need for much greater cost control in the private health insurance industry so that premiums are affordable for as many people as possible.
