Mary Butler (Waterford, Fianna Fail) | Oireachtas source

Currently, 46.8% of the population holds private health insurance. This amounts to 2.48 million people and represents a total annual premium income of approximately €3.18 billion.

Health insurance is provided according to four principles: open enrolment, lifetime cover, minimum benefit and community rating. The risk equalisation scheme is the mechanism designed to support the objective of a community-rated health insurance market. Under the scheme, funds are distributed in the form of credits to commensurate insurers for the additional cost of insuring older and sicker members. The credits are funded by stamp duties payable by health insurance providers for each health insurance policy issued. The risk equalisation credits and stamp duties are updated annually to ensure they align with the estimates of the insured population and the type, number and cost of claims that will be made on the health insurance plans.

This Bill will ensure we can continue to provide the necessary support so that the costs of health insurance are shared across the insured population.

Risk equalisation credits based on age have been reallocated to those based on health status without increasing the stamp duty payable. Increasing the proportion of credits associated with health status helps to share risk more effectively.

Private health insurance policy aims to progressively align with Sláintecare reform objectives. The Government is fully committed to the Sláintecare vision of a universal single-tier health and social care system. Work is continuing within the Department of Health and HSE to progress work on Sláintecare. The Minister for Health, the Minister of State, Deputy Naughton, and I are fully committed to the continued delivery of Sláintecare reform. However, it is important to maintain the effectiveness of the community-rated health insurance market and the risk equalisation scheme that underpins it while that work is ongoing.

The programme for Government commits to retaining access to private healthcare services, ensuring choice for those accessing healthcare. This Bill continues our policy of insurance solidarity with, and affordable premiums for, sicker and older people. On behalf of the Minister, Deputy Donnelly, I commend the Bill to the House.

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