James Reilly (Dublin North, Fine Gael)

The Minister claims that if she did not take action, VHI premiums would increase by 60% for older people. This could not happen because we have community rating. It would have to increase by 60% for everybody. She claimed that the levy would not lead to any overall increase in the approximately €1.5 billion in private health insurance premiums paid, but she was wrong because VHI premiums have increased by 23% and Quinn Healthcare increased premiums by 16%, while stating baldly that 50% of that rise was accounted for by the levy. She claimed that certain insurers were tailoring their plans to suit younger people. So did the VHI, which has dominance in the 20, 30, 40 and 50 year old age group sectors — as well as in the 60, 70 and 80 age groups. It dominates the market.

When will the Minister bring the legislation before the House? What will she do about the dominance of the VHI in the marketplace? Will the money raised by the levy be ring-fenced to health insurance, or will it go into the Exchequer — that is a later question, but it may be taken now? Is the Minister not concerned about the estimated 200,000 people who are expected to leave private health insurance on foot of the introduction of the health insurance levy?

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