Alan Farrell (Dublin North, Fine Gael) | Oireachtas source

I welcome the contributions from the previous two speakers which I consider to be constructive and the Minister can speak for himself in that regard. It is heartening to hear Members being constructive on issues such as this because the purpose of this Bill is to attempt to reduce insurance premia so that the figures which Deputy Finian McGrath outlined of 250,000 leaving private health insurance over the past five or six years is tackled. An essential component of our integrated health system is that individuals have the option of taking out a health insurance policy but this must be affordable. A significant issue in recent years has been the ever-increasing cost of insurance premia from private insurance companies.

This Bill will encourage younger people to take out health insurance as they are vital to the lifetime community rating concept. Their participation is to their own benefit as they progress in life and it also supports older members of the community who may find insurance premia too expensive as they get older.

I welcome the proposal in the Bill to remove the 2009 interim scheme in respect of age-related credits and levies. From 1 March 2015, additional discounts of up to 20% will be available for those aged under 17 years and 17% for those over 18 years. I am a father of two young sons and I have a family insurance policy. The premium covering my two sons has been reduced by 50% which is very beneficial and will apply to many families who rely upon private health insurance companies to ensure they can access affordable health care. Such insurance is essential when one has children aged one year and three and a half years old and when one counts the number of visits to Temple Street hospital and to the GP in the past three years which would put a large dent in mine and any family's cheque book. Children are prone to illness and to accidents and one must be ready to cater for those situations. Families need affordable health insurance policies because the waiting times to see certain consultants in the public health system can be as much as 18 months. The previous Minister and the current Minister have worked very hard to ensure that those waiting lists are reduced.

The number of individuals taking up health insurance has increased for the first time since the beginning of the recession, albeit it is a modest increase. This is reflective of the approach of this Government, the Department of Health and the insurance companies to deal with the spiralling costs. As the economy improves, the concept of private health insurance policies being a luxury commodity will, I hope, diminish, and people will begin to recognise the importance of such insurance.

I take this opportunity to note, welcome and recognise the work done with regard to medical cards, the more humane approach adopted by the Minister and the Department, in particular, when dealing with terminally-ill patients. This is a welcome development, even if late in the day. I acknowledge that this is part of the reform agenda which is taking somewhat longer to implement than some of us would wish.

Over recent years, the number of individuals between the ages of 18 and 25 who dropped out of health insurance has reduced by 31%. The age cohort of 18 to 25 year olds are the backbone of the private health insurance business because they pay their premia, they do not claim because they are for the most part young and healthy and they support older people who tend to avail of insurance a little more, for obvious reasons. This Bill will encourage younger people to take out health insurance policies along with initiatives by the insurance companies and this is welcome.

The lifetime community rating is a modification of the 2009 scheme and it aims to incentivise people to take out health insurance policies at a younger age.

Under the system those who take out insurance at a younger age and maintain it will pay lower premiums than those taking out health insurance at an older age, and this in itself it an incentive for those fortunate enough to be able to afford such a policy and who are in work. As the economy and the jobs market improve, and figures for this were announced yesterday, I very much hope we will see more individuals being able to take up insurance again, if their wage packets allow them to do so.

The Health Insurance Authority will mount a communications campaign on the changes being made in the health insurance market. Given the introduction of lifetime community rating on 1 May, such a campaign should start as soon as possible. Informing the public of precisely what we hope to achieve, not only through this Bill but through other measures taken by the Department of Health, is of paramount importance.

I am pleased to see credits for up to three years of unemployment since 2008 will be provided following the expiry of the grace period on 30 April for those who previously had health insurance. During the economic crisis premiums simply became unaffordable for many people throughout Ireland. Unfortunately such premium increases are an inevitable consequence of fewer people taking up insurance in the first place, because the fewer people in employment, the fewer policies are available. The cost of keeping such policies then becomes unaffordable and insurance companies must raise premiums because they are losing their customers.

Any measure by the Government to address these issues is welcome, as are attempts to reduce the cost of the provision of health care in the first place, to improve waiting times and to address issues such as those raised by other Members on important posts in the health service. The public jobs website is constantly looking for consultants of certain types, and it is very difficult to fill these positions, presumably because of the salary scale involved. Any measure to reduce the overall burden on the Exchequer for the provision of health care is welcome and this is one of those steps.

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