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Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: -----starting to lecture us on what we should do now when we have made more progress in two years in the health service generally and in this area than it made in its entire 14 years in government, as it wrecked the country, is a little bit much to swallow.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: We shall revisit this when it reaches 10%. How about that? At the moment, what we are talking about here is putting in place a clause that will not allow it to exceed 12%. I look forward to the day when it reaches 10%, let alone exceeds it. The risk equalisation has increased from 73% to 78% the effectiveness of the compensation for people over the age of 70 and under the age of 80 and...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I move amendment No. 5: In page 5, between lines 18 and 19, to insert the following: "Amendment of section 7H of Principal Act 6.Section 7H(ii) of the Principal Act is amended by inserting "after deducting from the net premium the deduction to which such insured person is entitled, for the year of assessment concerned, by virtue of section 470 of the Taxes Consolidation Act 1977" after "each...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: This would have come before us in any event.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: Absolutely. Why not? It is about informing people. The more information one has the more empowered one is---

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: As I say, this is to help people to know precisely what their insurance is costing. It is a move we would make in any event. Up until now many people did not know precisely what their insurance was costing, they just knew what they had to pay. They did not realise the true cost of what the taxpayer was subsidising. For the information of the Deputy, two years ago it cost the taxpayer...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I will forgive the Deputy the dramatics of his coach and four through UHI. We are on target to bringing in universal health insurance. We are putting the building blocks in place. It is not part of this Bill but obviously this Bill relates to it. I stand over what I have said. I propose that the amendment be accepted.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I accept that totally, but I have to point out that the HIA has an excellent website. I accept totally that older people do not avail of it.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I accept that.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: The HIA also has a telephone number and is happy to engage with people over the telephone. Older people much prefer to engage over the telephone. If the committee is suggesting officials from the HIA should go and sit down to talk to people, the cost of doing so would be utterly prohibitive. It is not a runner; it really is not going to happen. The HIA has a telephone number and its staff...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I have to reject the Deputy’s statement that this is a damning indictment of the HIA. The spread is not better because the market is segmented. The HIA would have to be given much stronger powers if it were to be in a position to prevent this. That matter is under consideration. The HIA’s role in the health insurance market has changed considerably in recent years. Its...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: They do not insist on anything other than it does not go above 12%.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I reject the Deputy’s amendment. I am not prepared to accept it. I do not accept the claim that the HIA is not doing the job it is empowered to do, or that certain figures represent a "damning indictment" of it. Deputies raised the issue of community lifetime rating which I am examining actively because I agree with the principle that somebody who has been insured for all of his or...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: That cannot be done in advance. The calculations are made at the end of the year on the basis of what has happened, as opposed to what might happen.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: There is no rationale for this. Is it feasible that medical inflation is running at 9% when the rest of the country was in deflation and only in recent times has returned to very low single-digit inflation? There is no logical explanation. As a doctor working in the system, I see no logical explanation for it. What we have seen is a drop in the number of people insured and at the same...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: The Health Insurance Act 2012 provides the legal framework for the risk equalisation scheme 2013. It has European Union approval. In this decision, the European Commission has concluded that the risk equalisation scheme satisfies the conditions laid down in the 2012 EU framework for state aid in the form of public service compensation. It is, therefore, a scheme which is compatible with...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: In response to Deputy Naughten we already pay risk equalisation credits based on age, gender and the level of cover. The hospital bed utilisation charge is an additional credit in respect of health status. In 2014 we will work to expand the measurement of health status. The Deputy stated I will say this is a small amount of money by comparison to the true cost and of course I will because...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: Yes. It does not apply to day cases.

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: I am quite happy what we are doing gives us some measure of health status. I am not happy it gives us the full measure but it gives us some measure. We have discussed this issue with the insurers and we continue to examine further measures we can agree between us. I wish to share some good news with the committee. As all private patients will pay for their services from 1 January, it has...

Committee on Health and Children: Select Sub-Committee on Health: Health Insurance (Amendment) Bill 2013: Committee Stage (3 Dec 2013)

James Reilly: -----and that is what I intend to do.

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