Stephen Donnelly (Wicklow, Fianna Fail) | Oireachtas source

I thank the Deputy. We have probably discussed this aspect on a few occasions in the context of this Bill. The 6% rate was a recommendation from the Health Insurance Authority. A report was done and a range recommended between 5.5% and 8.6%. The 6%, therefore, is right down at the lower end of the range. The Deputy's question is a very fair one, why not bring it down further. The report looked around Europe and, essentially, we have to balance two things. We want more competition in the market here. We know what happens when there is a monopoly, a duopoly or an oligopoly here. It is the customer who ends up paying too much. This rate, therefore, is at the lower end of what was recommended in trying to achieve a balance of a reasonable but not an extortionate rate of return for the providers while still having a suitably attractive market to have suitable competition in the country.

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