Billy Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I have been around the House long enough to know that, even if I had impressed on the Minister the need to accept the amendment through the force of argument, it would not have happened. The Minister has said insurance companies can offer packages to young people and the question is why are they not doing so. If they are to sustain a business model, there must be a number of young, healthy people to cross-subsidise. That is a basic principle. VHI meets more than 80% of the cost and covers only 54% of people. This is another indication that if other insurers do not encourage young people to take out private health insurance, they will be in the same difficulty as the age profile of their clients moves upwards. Other companies will come in and cherry-pick younger people such that there will not be a continual creeping upwards of the age profile of clients. New clients are needed to cross-subsidise others and support intergenerational solidarity. We understand families are under pressure and that there is a need to drive down the cost of medical insurance and the fees charged by health care providers. We also appreciate that the Minister is carrying out an in-depth analysis of the health insurance sector, encouraging clinical audits and encouraging companies to tighten up on costs. However, the principle we are trying to invoke is that there should be positive engagement on policy between the Government, the Department and health insurers to encourage uptake of health insurance.

The other reason for the decline in the number of young people taking private health cover is that they are unsure of what universal health insurance means. The Minister says he has a target of providing universal health insurance by 2016. In the meantime, people will ask why they should take out private health cover other than to ensure it will be there for them if they get sick. What other benefit does it give? Does having cover allow a person to build up loyalty with an insurance company? People take out private health insurance for a number of reasons, but they do so primarily because they expect a loyalty bonus if they remain with a particular insurance provider.

I ask the Minister to look on this amendment favourably, even at this late hour. I accept that he cannot accept the amendment but can he give a commitment, at policy level, to ensure that young people see health insurance as beneficial until we move to mandatory health insurance?

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