Dáil Éireann Debate, Wednesday - 29 June 2016
176. Deputy Lisa Chambers asked the Minister for Health his views on issues (details supplied) regarding health insurance matters for members of the Defence Forces; and if he will review the regulations for lifetime community rating loadings so that those in the Defence Forces will not be subject to the penalty loadings for not taking out insurance policies that they do not need. [18764/16]
View answerCommunity rating, reflecting the principle of intergenerational solidarity, is a fundamental cornerstone of the Irish health insurance system. This means that people who are old or sick do not have to pay more for health insurance than the young and healthy. Lifetime Community Rating (LCR) came into effect on 1 May 2015 and is designed to encourage people to join the private health insurance market at an earlier age and thus support affordable community-rated premiums for everyone who wishes to purchase insurance. Late entry loadings of 2% per annum now apply for people who buy health insurance for the first time at the age of 35 and older.
For the purposes of LCR, an insured person must have a continuous period of cover under an in-patient indemnity health insurance contract effected by a registered undertaking. The arrangements in place for Commissioned Officers in the Defence Forces, which include the reimbursement of fees incurred when members require medical treatment, do not fulfil the definition of a health insurance contract provided by a registered undertaking. The arrangements do not comply with health insurance legislation or the key principles of community rating, open enrolment, lifetime cover and minimum benefit on which the Irish private health insurance regulatory system is based.
Section 7 of S.I. 312 of 2014, the enabling legislation for Lifetime Community Rating, explicitly provides for a review of the Scheme to be carried out by the Health Insurance Authority (HIA) after 30 April 2017. This review will provide the appropriate opportunity to consider the wider implications of LCR and address any issues that may arise from the operation of the Scheme as currently provided in the Regulations. My Department has shared the details of previous discussions with the Department of Defence on this matter with the HIA and will continue to highlight any concerns raised for consideration as part of its planned independent review of the Regulations in 2017.
