Dáil Éireann Debate, Wednesday - 7 April 2004
19 Mr. Costello asked the Minister for Health and Children if he has sought or received an assessment from the VHI of the likely impact on its premiums of the decision not to proceed with the proposed risk equalisation scheme; and if he will make a statement on the matter. [10805/04]
Amharc ar fhreagraAs provided for under the Health Insurance Acts and the risk equalisation scheme, the Health Insurance Authority has notified the insurers concerned, including the Voluntary Health Insurance Board, of its proposed recommendation to me, as Minister, concerning the commencement of risk equalisation payments. The authority has advised the insurers that it proposes to recommend that risk equalisation payments ought not to be commenced. The legislation provides for the insurers to make representations to the authority on its proposed recommendation and requires it to take such representations into account before finalising its recommendation as to whether the Minister ought or ought not to commence risk equalisation payments.
As the authority has not submitted its final recommendation, and as I have no function in that process under the legislation, it would not be appropriate for me to seek an assessment of the kind referred to by the Deputy. Under VHI legislation, the VHI board has the primary responsibility to set premium rates. The legislation obliges the board to notify the Minister of proposed premium increases which it has decided before effecting them. The Minister may prevent the introduction of any proposed increase, but must give reasons for doing so. It would be inappropriate for me to engage in consideration of the matter of VHI premium increases outside that process and in the context to which the Deputy refers. I recognise the independent role and responsibilities which the authority must perform with regard to the risk equalisation scheme.
