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Insurance Industry.

Dáil Éireann Debate, Tuesday - 21 June 2005

Tuesday, 21 June 2005

Ceisteanna (60, 61)

Emmet Stagg

Ceist:

65 Mr. Stagg asked the Tánaiste and Minister for Health and Children if she has given the go-ahead for the introduction of risk equalisation in the health insurance market; when risk equalisation will be in operation; and if she will make a statement on the matter. [20852/05]

Amharc ar fhreagra

Freagraí scríofa

The Health Insurance Authority submitted its report on 29 April last in respect of the period July to December 2004. The authority's report recommended the commencement of risk equalisation transfers. I subsequently wrote to insurers with a proposed determination. However, this determination, under the terms of the Health Insurance Acts, is subject to a statutory representation process. Given that the statutory process assigns specific functions to me as Minister, it would be inappropriate to make any further comments at this time.

Thomas P. Broughan

Ceist:

66 Mr. Broughan asked the Tánaiste and Minister for Health and Children the position in regard to negotiations with hospital consultants regarding the indemnity scheme; if the Government is planning legal action against the Medical Defence Union in regard to historic liabilities; and if she will make a statement on the matter. [20817/05]

Amharc ar fhreagra

I am happy to be able to report that almost all of the issues which needed to be resolved with consultants arising from the establishment of the clinical indemnity scheme, CIS, have now been dealt with.

The only remaining issue is a demand from the consultants that the caps placed on the limits of indemnity which consultants need to purchase to cover private practice not covered by the CIS should be halved. Most consultants currently need to purchase indemnity cover for the first €1 million of each and every claim against them. Consultant obstetricians purchase cover for the first €500,000 of each and every claim with an aggregate limit of indemnity of €1.5 million in any one year. I am satisfied that these limits put in place in February 2004 struck a reasonable balance between the amount of risk which consultants should bear compared to that taken on by the State. This view was endorsed by the Labour Court last December. However, the Labour Court also recommended that an independent actuarial review of the caps should be undertaken at the end of 2005. To that end the firm of Lane, Clark and Peacock, consulting actuaries to my Department and to the CIS, has been asked to assess the adequacy of the existing caps and to report on the implications of including claims against consultant neurosurgeons and consultant orthopaedic surgeons who undertake spinal surgery in the lower €500,000 cap. I expect to have their report before the end of July.

Earlier this year the Government indicated that it would consider supporting individual consultants who had been left without cover by the Medical Defence Union in challenging these decisions by the MDU. Last month I instructed the Chief State Solicitor's office to apply to the High Court for an order joining the MDU as third party in proceedings between a health board and a former consultant member of the MDU where the MDU had withdrawn assistance. The court granted the order sought and formal notice of this has now been served on the MDU. A similar order was recently granted in respect of a second consultant obstetrician who had been refused assistance by the MDU. I understand that similar applications on behalf of a further group of consultants are at an advanced stage of preparation.

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