Deputy Caoimhghín Ó Caoláin: This is important legislation and a significant updating of the regulatory regime for the health insurance sector in this State. The Bill continues the necessary system of community rating which ensures that all consumers are charged the same premium for a particular plan regardless of age, gender or health status, thus preventing price discrimination against those more likely to require medical treatment. The Bill amends Section 1A of the 1994 Health Insurance Act by making the provision for community rating more specific, extending the cost subsidy currently between the young and the old to include the more healthy and the less healthy. As long as we have the type of health insurance market and the type of health funding that exists in this State, the regulatory regime provided for in the Bill will be necessary. It involves a complex system of risk equalisation to support the community rating principle. This entails the transfer of compensation from insurers who carry lighter risk burdens to those who carry heavier risk burdens. All this requires regulation, monitoring, enforcement and penalties.

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