Terence Flanagan
Question:366. Deputy Terence Flanagan asked the Minister for Health if he will address a matter (details supplied) regarding health insurance; and if he will make a statement on the matter. [3126/16]
View answerTuesday, 26 January 2016
Questions (366)
Written answers
Insurance companies operate as commercial providers and, as Mniister for Health, I have no legal power to intervene in relation to any insurer’s prices. The cost of private health insurance is influenced by a number of factors such as the number of persons in the market, the age profile of those holding private health insurance and ongoing medical innovations which can have an impact on the cost of care and the cost of claims.
Since my appointment as Minister, keeping the health insurance market stable and increasing the numbers taking out health insurance has been one of my key priorities. An increase in the numbers taking out health insurance helps to control premium inflation, thereby keeping health insurance more affordable for everyone. Lifetime Community Rating Regulations came into effect from 1 May 2015 and late entry loadings now apply for people aged 35 and over when taking out health insurance for the first time. This encourages people to take out health insurance at a younger age, thereby avoiding loadings and helping to spread the health costs of older and less healthy people across all insured persons. In addition, new legislation effective from May 2015 provides for the introduction of ‘Young Adult’ rates of premium, which are based on a sliding scale of maximum chargeable rates up to age 26. Without these measures, there would be a continued deterioration in the age profile of the insured population, which in turn would contribute to claims inflation and result in higher insurance premiums.
The number of people now holding private health insurance is 2.118 million, or 46% of the Irish population (end-September 2015). This is an increase of over 93,000 since the start of 2015, which is extremely welcome as it helps to control premium inflation and thus keep health insurance affordable for all who wish to avail of it.
We have a highly competitive insurance market and I urge customers to shop around for the best value for their desired level of cover. Many consumers can make savings on their health insurance premiums by reviewing the level of cover to ensure that their needs are being met, without being over-insured. The Health Insurance Authority website is a good place to start as it offers a clear price comparison and can be accessed at www.hia.ie.