Denis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

I thank Mr. Joyce and Mr. Sloyan for coming before the committee today. We will have much more engagement on this issue because it is a growing one, so to speak. Since 2009, health insurance premia here have doubled. Yesterday's newspapers reported that individuals and families are facing an additional €300 cost from January. If we examine the issue of risk equalisation in the Health Insurance Authority's study purely from a gender and age point of view, that would be a loading of approximately €1,100 just on the equalisation aspect. In addition, the cost of the insurance premia, which does not include the new provision in the legislation on hospital utilisation, will put further pressure on many young families. Furthermore, because of the policy decision made by Government property taxes will be introduced. It seems that further pressure is being put on many families.

Does the HIA examine the issue of the levy from an equalisation point of view to ensure everyone pays the same premium or does it consider the issue of affordability? The reality for the majority of families is that if health insurance increases by €300 and if an additional levy is brought in, it will push health insurance beyond their reach. The issue of affordability must be taken into account because if it is not, the entire system could collapse.

In his opening statement Mr. Joyce made the point that there has been a greater increase in premium inflation at the higher end of the packages and for older people. Is it not the case traditionally that the better health insurance policies are usually taken out either by wealthy people or by older people? Under the legislation being proposed they would pay the highest level of risk equalisation levy into the fund. Does that not mean that affordability of those packages will be pushed even further out of the reach of older people? I thought the idea behind risk equalisation was to try to make it affordable for everyone.

Mr. Joyce made the point also that health insurance is now more expensive for older people but how does he square the circle in that the numbers of older people covered by insurance is increasing? The proportion of people in the older age category with insurance is increasing yet premiums appear to be increasing at a greater rate in respect of those people. Is it because they are opting for the more expensive policies? Naturally, they would be far more concerned about the demand for health services because of their age but at the same time younger people are haemorrhaging out of the system. A total of 80,000 people will no longer be in the private health insurance system this year. What incentives exist to grow the market? We must grow the market because if we do not the entire system here will collapse, which will put further pressure on our public health system. It will make it more expensive for employers who provide health insurance cover to employ people. That is very much the case regarding foreign direct investment coming here. Also, it will make the introduction of universal health insurance a mountain to be overcome if large numbers have left the system. I ask Mr. Joyce to outline the way the HIA intends to square that circle.