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

There have been several reports on the VHI, many of them done by the Department’s actuarial advisers, Milliman. These are the reports the VHI and the Department would take up. I have seen the Matheson report too.

The risk equalisation scheme is working. It seeks to compensate insurers for the cost of older policyholders who tend to be sicker and use health services more. We have to be careful, however, that it does not overcompensate. That is why the rate is set and it is agreed with the European Commission that if an insurer makes profits of more 12% three years running, then it is seen as overcompensation and the moneys are taken back from them to be put into the health insurance fund. As this scheme becomes more effective, the other insurers will see it will be worth their while and profitable to take on older policyholders.

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