Mary Harney (Dublin Mid West, Progressive Democrats)

A number of groups that looked at the private health insurance market in Ireland, including all the companies in the market, suggested to me that there should be an incentive for people to begin their insurance when they are young in order to keep insurance affordable for older people. Relatively few people under the age of 35 use insurance. At a committee meeting recently I mentioned that I am aware of a company that has over 2,000 insured employees. I was told there was not a single claim last year because these are all very young people.

We are going to introduce what is termed "lifetime community rating" and we will do so by way of regulations that are currently being drafted. We do not require separate legislation for that. Essentially, the younger one joins, the cheaper the policy will be. There will be a cost disincentive the older one is joining the health insurance market. That is fair and everybody has recommended it.

With regard to job losses, there is no doubt the increase in health insurance in Ireland between 1996 and 2008 of approximately 14% has been accounted for, in the main, by our increased prosperity and more people in the work force. Some have their health insurance paid as part of their employment contract. There is no doubt about that and there has been a considerable increase in numbers insured, particularly in the Deputy's area of the mid-west. I understand that region has the highest rate of young people insured in the country. That was the case a year or so ago.

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