Charles Flanagan (Laois-Offaly, Fine Gael)

I move amendment No. 12:

In page 10, after line 49, to insert the following:

16.—The Competition Authority must review the health insurance market on a 12 monthly basis, particularly with a view to examining whether the Voluntary Health Insurance is abusing its dominant position, and to ensure that the Voluntary Health Insurance cooperates fully with any investigation carried out by the Competition Authority.".

This intent of this amendment is to provide that the board may foster competition within the health insurance market and refrain from engaging in actions that may hinder competition in the market. We should recognise the importance of market-driven, consumer-focused competition in the private health insurance market. The Minister of State may say that it is already the case but we have just three players in the market. In view of that, the consumer has seen the cost of health insurance rise on an annual basis. The basis of this amendment is to ensure the Competition Authority reviews, on an annual basis, the health insurance market. The Minister of State may say that is something the Competition Authority may do in any event but, given the importance of the market, it is appropriate that the Competition Authority be mandated to do so. If the market contained more health insurers and was more evenly distributed, the dependence on the VHI would diminish. With more competition we could expect lower premiums.

The Barrington, Health Insurance Authority and Competition Authority reports all recommended that the VHI discontinue its policy of cancelling the travel insurance policy should a consumer switch health insurance provider. This has not happened and I hope the Competition Authority could be empowered to undertake annual reviews, particularly to ensure that the VHI's dominant position can be broken up. This amendment was considered on Committee Stage. If the Minister of State is not prepared to accept this amendment, could he give assurances that a body, such as the Competition Authority, could have such appropriate power vested to ensure it can act at all times in the interest of the consumer?

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