Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

Section 3 amends section 7A of the Act and refers to the premiums that may be charged under health insurance contracts in certain circumstances. This section clarifies that the obligation on insurers to impose lifetime community rating loadings, as provided for in regulations signed into law on 7 July 2014, is mandatory. The proposed amendment will be considered as part of the review of the scheme provided for in the regulations, which will be carried out by the HIA in April 2017 after the scheme has been in operation for a time.

Deputy Kelleher referred to penalties, but I prefer to view them as back contributions for the lengths of time during which people did not make health insurance contributions. What he has proposed seems similar to what is done in Australia where, if one does not have health insurance until one is 40 years of age, one only pays the loading for ten years. This seems like a good idea, as people would not have to pay loading for the rest of their lives but, rather, only for eight, ten, 11 or 12 years, whichever is appropriate. This would not require primary legislation; it could be done by way of regulation. I am open to doing so, but I do not believe it needs to be done now. The issue does not arise now, as the measure has only just been introduced. In principle, though, it is a good idea and I would like to give it proper consideration in the context of the review in one or two years' time when the system is up and running.