James Reilly (Dublin North, Fine Gael)

There might be a little bit of movement there but, by and large, the number in the market is shrinking. The levy will create an even larger barrier to entry for any new players. Unlike the previous risk equalisation, there are no exemptions to allow smaller, new players to establish themselves. With such barriers to entry and harmonisation of pricing, there will be less scope to compete in this market, resulting in the delivery of less choice and less innovation. Ultimately, it will result in poorer value to private health insurance customers. The Minister and I know that with fewer players there is less likelihood of competition and less choice of product. In the past, the VHI operated in a manner that controlled demand by limiting supply. The entry of the two new players into the market has gone some way to reduce that method of operation, but we need more insurers in the market.

Fine Gael's "Fair Care" document is based on the Dutch model. Under that system, they have 20 different insurers in a market for 16 million people, which is highly regulated. With that sort of regulation in place, they have managed to insist on a standard package which accounts for all of people's care, except for long-term care. Through a risk equalisation fund, they have managed to make the elderly, chronically ill and diabetics more attractive to insurers who have gone after that market. There is no reason we should not be doing that.

I would not commend this Bill to the House. I oppose it vehemently and believe it is ill advised. It is anti-competitive and is driving families out of the insurance market. It will put more pressure on our already pressurised health service. On all counts it is destined to be a disaster. We will regret the measure and, in fact, many people who have had to give up their private health insurance are already regretting it. In a new paradigm with a new Fair Care deal, if Fine Gael is in power after the next election, which I hope will not be too far away, everybody will be insured and everybody will have timely access to hospital. They will also have a free GP-care package and medication.

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