Mr. Dónal Clancy:

I would like to pick up on a number of points raised by Mr. O'Dwyer. We would be in agreement with much of what he said but on the issue of efficiencies, the VHI is the market maker and the main game player, whether we like it or not. The Milliman group came in and produced its report, which must be taken at face value. If it needs to be rebutted publicly, in terms of certain details, let us do that. I would also point out that at Laya Healthcare, we provide 100% cover for essential care, including orthopaedics. If we were to reduce that to 80%, I am sure we would have a big reduction in our claims too. However, this must be about providing value for our customers. If a person goes into hospital and is told that he or she has to pay 20% or 30% of the cost of the procedure, or in the case of non-advanced products, 34% of the cost, that can be an exorbitant amount in many cases. If we were to introduce a policy of reducing the cover that we give, I am sure we would also generate additional savings.

Like VHI, we believe that community rating is a good policy. I have worked in other health insurance markets and would totally support the idea of community rating. I also believe that Ireland should be proud of the way it has introduced community rating across the board. I agree that lifetime cover needs to be introduced and believe that risk rating needs to take place on a standard product, and this comes back to Deputy Naughten's point about gold plating. There is a fundamental social issue at play right now whereby we have people who are barely hanging on by their fingertips subsidising those who can afford hotel-type accommodation in the best facilities in the country. There is a difference between providing essential cover that is equal and done on a standard basis and providing additional cover for services for those who want and can afford them. It should not be done-----