Michael Kitt (Galway East, Fianna Fail)

I am interested in what effect the measures in the Bill will have on health insurance prices, an issue raised by Deputy O'Sullivan. I hope the Minister will address this issue in her reply. Prices must be affordable, particularly for those aged 50 years or more. A major issue has arisen regarding how the health insurance companies will price their insurance plans. I have cited examples of niche markets these companies may create, whether by offering sports medicine or maternity services for younger people or cardiac care and hip operations for an older market. A question also arises regarding additional tax relief for older customers, particularly in the case of people who do not pay tax. I understand that in such circumstances the companies will benefit from the tax break rather than it being passed on to older people.

People will shop around for health insurance. The imposition of restrictions or waiting times on those who seek to switch policy should be addressed. I hope individuals have an opportunity to switch policy. In this respect, it is important that health insurance customers are informed that they wait for a set period before being able to move to a higher plan.

My experience of dealing primarily with the VHI is that the company's services are good and it responds well to its customers. Competition in the market means the various companies offer a good range of services. Many of them have indicated that they are not being given an opportunity to market their different policies. I hope the position in this regard will improve.

During my investigation into this matter, I noted interesting variations in the cost of claims between age groups. For example, claim costs for people aged more than 60 years are twice as high as those aged in their 30s, while claim costs for those aged 80 years or more are four times as high as the average for 40 year olds. Without action by the Minister, costs could double and for this reason, I applaud the Minister's decision to introduce this legislation.

I hope companies will inform us about their activities because consumers are keen to ascertain what changes in insurance policies will be introduced and when they will take effect. I do not know how much notice is given concerning changes to terms and conditions but a number of days' notice should be given before the date for renewal. This is an important issue.

Tax relief is granted to health insurance companies for all policies at the standard rate of 20%. I hope the position will not change and people will continue to benefit from tax relief. As matters stand, health insurance policy holders are not required to submit a receipt but must simply notify the Revenue Commissioners that they are a members of a particular insurance company.

I welcome the Minister's contribution and this timely legislation. The Minister indicated she will introduce further changes where necessary and noted the role of the European Commission in this matter. I look forward to her contribution and the introduction of amendments on Committee Stage.

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