James Reilly (Dublin North, Fine Gael) | Oireachtas source

In my response to Question No. 226 of 4 October 2012, I outlined how, in 2011 following an EU-wide competitive tendering process, I appointed Goodbody Stockbrokers and Matheson Ormsby Prentice Solicitors, MOPS, as financial and legal advisers to make recommendations on options to address the current imbalance in the private health insurance market. The work undertaken under this contract included the preparation of a report on options for the rebalancing of the private health insurance market and the examination of options for obtaining a more even balance of customers across the market. The request for tenders indicated that matters to be considered included the advantages and disadvantages of ensuring a better spread of risk among health insurers; the structure of the market and how market share and risk were distributed; the position of existing insurers in the market; any possible incentive or barrier to entry into the market by other insurers; any impact of the introduction of a new risk equalisation scheme and revised minimum benefit regulations; and, if recommended in the report as feasible or desirable, how rebalancing might best be achieved.

In accordance with EU public procurement rules, the tender submitted by the Goodbody Stockbrokers-MOPS consortium was chosen as the most economically advantageous proposal arising from the competitive process. The procurement process was conducted in a fair and reasonable manner and each step of the process was overseen by an evaluation committee. The terms of the request for tenders issued for the competitive process required each tendering party to provide a total fixed price inclusive of VAT and all expenses for all the services it proposed to provide. A more detailed breakdown of the costs of the work undertaken by the consortium would consist of commercially sensitive information which I do not consider it appropriate to release.

Many issues affecting the private health insurance market must be addressed in order that it can be stabilised and readied for the transition to a system of universal health insurance, UHI, in the coming years. The consortium has presented a report to me that I am considering in the context of the future structure of the private health insurance market as we prepare for the introduction of UHI.

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