Dáil Éireann Debate, Thursday - 1 December 2016
206. Deputy Michael McGrath asked the Minister for Health whether a review has been undertaken into the rising cost of health insurance; if so, the details of the review; and if he will make a statement on the matter. [38186/16]
View answerMy Department has not undertaken a review into the cost of health insurance, as the main contributors to costs in the market are well established. 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. Each of these are contributors to the cost of care, the cost of claims and therefore the cost of premia payable. The insurance companies operate as commercial providers and as Minister for Health, I have no legal power to intervene in relation to any insurer’s pricing strategies.
A community-rated health insurance market depends on inter-generational solidarity and requires a constant influx of young and healthy members to support the older, less healthy members. Lifetime Community Rating and "Young Adult" rates of premium were introduced last year to encourage young people into the market. Following on from their introduction, the number of people now holding private health insurance is 2.14 million, or 46% of the Irish population, which includes an increase of over 104,000 from January 2015 to January 2016. This upward trend has continued in 2016 when the market grew by a further 17,000 to end-September. An increase in the numbers taking out health insurance helps to control premium inflation, thereby keeping health insurance more affordable for those who wish to avail of it.
We have a highly competitive insurance market. Many consumers can make savings on their health insurance premiums by taking advantage of promotional offers and by reviewing their level of cover to ensure their needs are being met, without being over-insured. The Health Insurance Authority (HIA) has recently launched an information campaign to coincide with policy renewal called “Before you renew, see what’s right for you”, to help consumers make informed decisions. The HIA website offers a clear price comparison and can be accessed at www.hia.ie. All of the health insurers provide plans at a variety of price points, which provides scope for consumers to find value in the market and to access the level of cover appropriate to their individual or family needs.
