Dáil Éireann Debate, Thursday - 16 April 2015
21. Deputy Mattie McGrath asked the Minister for Health if he will reconsider plans to introduce financial penalties for those who do not wish to avail of private health insurance; his views on concerns that such penalties will place an undue burden on those who currently cannot afford to sign up to a private health insurance scheme; and if he will make a statement on the matter. [14704/15]
Amharc ar fhreagraTaking out health insurance is optional. Anyone ordinarily resident in the country is entitled, subject to certain charges, to receive public in-patient and out-patient hospital services. People who do not take out health insurance continue to have the same entitlement to services in the public hospital system.
Community rating, reflecting the principle of intergenerational solidarity, is a fundamental cornerstone of the health insurance system. This means that people who are old or sick do not have to pay more than the young and well. Under community rating, the level of risk that a particular consumer poses to an insurer does not directly affect the premium paid. Premiums for younger or healthier lives are typically higher than their expected claims would require, whereas for older or less healthy lives, premiums are typically lower than the expected claims would require.
For Community Rating to work we depend on adequate numbers of younger people taking out health insurance to help keep premium prices down for everybody. Lifetime Community Rating is being introduced to encourage people to take out health insurance at a younger age, thereby helping to spread the costs of older and less healthy people across society, to support affordable community-rated premiums for everyone who wishes to purchase insurance. It is a necessary measure to help support the viability of community rating within our system of health insurance. I have no intention of reconsidering the introduction of Lifetime Community Rating, as without it there will be a continued deterioration in the age profile of the insured population, which in turn will contribute to claims inflation and higher insurance premiums for all.
It is worth clarifying that those who do not wish to avail of private health insurance will not face a financial penalty. They retain their full entitlement to use of public hospital services. Under Lifetime Community Rating, those who decide to take out health insurance later in life will face an added premium compared to those who have subscribed over a longer period. I am satisfied that this measure is fully justified for the purposes of maintaining a stable insurance market which provides equity of treatment between young and old.
