Seanad debates

Wednesday, 26 February 2003

Health Insurance (Amendment) Bill 2003: Second Stage.

 

Section 6 relates to financial arrangements made in relation to the Health Insurance Authority at the time of its establishment. The ongoing operational costs of the authority are funded by the proceeds of a levy on the premium income of registered insurers. The levy is currently set at a rate of 0.14% of that annual premium income. However, the legislation allowed for the Minister to advance funds to the authority and, during 2001, sums slightly greater than €500,000 were advanced to it in respect of initial costs. As the legislation stands, it is obliged to repay the amount advanced. It considers that costs incurred in its establishment should be borne by the State. The authority is a public body and was established to carry out a public service in relation to the common good aspects of health insurance.

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