Paul Bradford (Fine Gael)

I welcome the Minister. It is not the first time she has been present to discuss the complicated matter of risk equalisation and the broader health insurance market.

With regard to the Government's proposals on risk equalisation and health insurance and its performance over the past four or five years, it has achieved the unique and perhaps unwelcome distinction of upsetting Bupa, to such an extent that it has left the market, the Quinn group, to such an extent that it has the Government before the courts, the VHI, which is crying foul, and the EU Commission, which seems far from satisfied with our health insurance market. There are challenges to be met, but they will not be met by this Government.

The Minister indicated that it is necessary to have this matter dealt with before the next official deadline at the end of July. Presumably, the new Government would have had time to reflect on the matter, and this course of action is rushed at the last minute. In February we passed legislation removing the three year exemption. That was last minute legislation. Now, this Oireachtas is at its end game and we are debating this measure in a vacuum. We need more time and explanation before we can be satisfied with what is being done.

It is necessary to ensure the continuation of community rating but that can be addressed in various ways. At one time the Minister and her Government colleagues claimed the present system of risk equalisation was sacrosanct and, not long ago, it was argued in both Houses that there could be no tampering with it. However, the Minister is today recommending a 20% reduction in the level of risk equalisation, which indicates that the Government's attitude previously was not as perfect as it thought.

I appreciate this is a complicated matter. Our aim must be to ensure competition and the retention of community rating. It is difficult to anticipate how the VHI will respond to this legislation. There were many expressions of concern by VHI personnel about the risk equalisation mechanism. The VHI was demanding the payment of the risk equalisation moneys, but those funds will now be 20% lower. The VHI is almost a monopoly and, therefore, the Minister and the Department should closely examine its operations, competitiveness and efficiency. It would not be unremarkable to find that a company of its size and in such a dominant position is not working as efficiently as it should. Obviously, the next Government will have to reflect carefully on the future of the VHI. In her radio interview this morning the Minister spoke about, although did not advocate, the possibility of mutualisation or some degree of privatisation. These possibilities must be examined but our concern must be to ensure the customer has choice.

We are hugely indebted to the Quinn group for taking on the Bupa mantle. It has brought a degree of certainty to the market and, hopefully, the success of the Quinn group in the broader insurance market will be replicated in the health insurance market and there will continue to be choice. However, there must be further reflection on the issue of community rating.

I am concerned that as the Dáil and Seanad reach their dissolution dates, we are putting through legislation which, although it must be passed within the next month or two, is being dealt with too hastily. We have much experience of hastily drafted and passed legislation coming back to haunt us. That is my concern about the measure before us. It is not just late but also rushed and it could cause difficulties in the future.

It is disappointing that we have not had more time to debate the recommendations of the various reports commissioned by the Minister. Reports were produced by the Health Insurance Authority, the Competition Authority and the Barrington group and all had different recommendations. Many questions still must be addressed and I am concerned that rushing through this measure could end up damaging the health insurance market and the consumer.