Dáil Éireann Debate, Tuesday - 22 November 2016
425. Deputy Jack Chambers asked the Minister for Health if he will request health insurers not to pass on the cost of the health insurance levy to families and health insurance policyholders; and if he will make a statement on the matter. [35944/16]
Amharc ar fhreagraRisk equalisation is a mechanism designed to support the objective of a community rated health insurance market, whereby all customers pay the same net premium (adjusted to reflect any loadings applicable under lifetime community rating) for the same health insurance product, irrespective of age, gender or health status.
It is important to note that increasing the stamp duty levies does not increase costs across the market. All of the monies collected by way of stamp duty are transferred to a Risk Equalisation Fund administered by the Health Insurance Authority and redistributed back to health insurance companies by way of credits in respect of older and sicker people. Increasing the credits and stamp duties under the scheme is needed to continue to share costs across the market.
The amount of any increase or decrease individual insurers pass on to consumers is a commercial decision for each of them. Insurance companies operate as commercial providers and as Minister for Health, I have no legal power to intervene in relation to any insurer’s prices. 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 premiums payable.
We have a highly competitive insurance market. Many consumers can make savings on their health insurance premiums by reviewing their level of cover to ensure that their needs are being met, without being over-insured. The Health Insurance Authority website offers a clear price comparison and can be accessed at www.hia.ie. All of the health insurers provide a number of lower cost plans, affording consumers the opportunity to find value in the market and to access the level of cover appropriate to their individual or family needs.
