Bernard Allen (Cork North Central, Fine Gael)
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Question 7: To ask the Minister for Health and Children her plans to break up the VHI; and if she will make a statement on the matter. [12019/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I have not made any decision to break up the VHI. The Government's legislative programme provides for legislation to be brought forward to amend the existing Voluntary Health Insurance Acts. The Parliamentary Counsel is drafting the related Bill and this is to be published before the summer recess. The main provisions of the Bill include giving the VHI commercial freedom on products and pricing and obliging the board to attain the level of reserves necessary to achieve authorisation

I recently received reports from the Competition Authority and the Health Insurance Authority on increasing competition in the private health insurance market. The two reports addressed the VHI's status. I am in the process of studying the recommendations made in the two reports, including those relating to the VHI. I am also awaiting a report from the market review group which is expected at the end of this month. When I have had the opportunity to examine all of the recommendations I intend to bring forward proposals to Government. Those recommendations will also inform the legislation.