Michael Healy-Rae
Ceist:341. Deputy Michael Healy-Rae asked the Minister for Health his views on a matter (details supplied) regarding health insurance; and if he will make a statement on the matter. [6702/17]
Amharc ar fhreagraTuesday, 14 February 2017
Ceisteanna (341)
Freagraí scríofa
The voluntary health insurance system in Ireland operates on the basis of community rating whereby everyone pays the same price for the same product (adjusted to reflect any loadings applicable under Lifetime Community Rating). Our community rated market is supported by a Risk Equalisation Scheme funded by a community rating levy payable by insurers on all written policies. The levy is collected by the Revenue Commissioners from insurers and all of the monies collected are paid over to the Risk Equalisation Fund administered by the independent regulator - the Health Insurance Authority. The Authority redistributes the monies back to the health insurance companies by way of credits in respect of older and sicker people. The scheme is designed to protect community rating by spreading the cost of insuring older and sicker people across the market and allows all people to continue to pay the same net amount for a given health insurance product.
It is important to note that increasing the stamp duty levies does not increase costs across the market. The Scheme is exchequer neutral, neither a cost nor a benefit to the State. 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 private health 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.