Mr. Jim Joyce:

Questions were raised also about the effect of risk equalisation on premiums. It is important to state that the purpose of risk equalisation is to equalise premiums. The point of the arrangement is that younger people will pay more in order that older people will pay less. In the new Health Insurance (Amendment) Bill we would make a distinction between different levels of product in the calculation of the levy. Clearly, that would be a new differentiation. The purpose of that is to ensure that in terms of the lower value products a disproportionate levy does not have to be paid.