Mr. Jim Joyce:

Only a few questions were directed to the Health Insurance Authority. Deputy Kelleher asked about the process by which we give advice and how it is considered. I believe it was briefly covered in Mr. Sloyan's presentation. In this area we normally submit a report in October which covers the experience with the market, the changes since the levies and so on were previously determined, and recommendations for the future. In addition, we give a large number of possible alternatives which could be implemented and which we cost.

The Deputy asked about what recommendations we made in our recent report and how they matched what had been proposed in the legislation. Regarding how the authority's advice is taken, this system of levies and what were originally tax reliefs and now risk-equalisation credits was designed by the Health Insurance Authority and was implemented by the Government on our advice. The latest report was made in October. It has been the practice of the Minister to publish the report with some redactions. I expect that will also happen this year.

On recommendations, the structure and financial effects of what is proposed is effectively the same as what we recommended.

There are a few minor variations and one fairly significant variation, the latter being that we proposed a somewhat higher equalisation levy for advance contracts and a somewhat lower equalisation levy for non-advance contracts. One can take various different views on this and the financial effect of the changes compared with what we proposed is negligible. As such, we are quite happy with the current proposal as representing a good development of the risk equalisation system as a whole in the direction in which we would see it going.

Deputy Creighton mentioned the large number of policies on offer. We agree this can be a problem because customers find it very confusing. It is difficult enough to make straightforward comparisons where there are only a few products; it is even more daunting when there are hundreds from which to choose. We have taken steps to minimise the effect of this, such as the requirement to give notice of a certain period before a new product can be introduced, whereas previously it could be done off the bat. In addition, we have tried to combat the practice that was prevalent some years ago of products being introduced for only one day, two days or a week. Now, any such products must be available for a specified period to enable the population as a whole to avail of them. More needs to be done in this regard and it is an area on which we intend to direct our attention.

Mr. Dowdall remarked that the levy has been driving up the cost of health insurance. That is totally incorrect. It may have driven up the cost for some people, but it brought down the cost for others. Overall, it is increasing the effectiveness of the risk equalisation system. If we want to support community rating, we must favour that.