Camillus Glynn (Fianna Fail)

The Government's action is necessary. It is important the playing pitch is levelled in private health insurance. Community rating is particularly important because it ensures no health insurer can price a person out of the market. Risk equalisation is a necessary feature of the community rated market. The VHI has approximately 1.5 million members; I am one of them. The reason for the risk equalisation reduction to 80% is the abolition of the three year exemption. It levels the playing pitch and will ensure consumers will not have to pay exorbitant premia.

The VHI has used up a great deal of its reserves and these must now be rebuilt. This can be done in two ways, either through an injection of capital by the State or by part privatisation. The organisation is 50 years old and given that people are generally creatures of habit and do not like change, they would prefer the VHI to continue as it is in the insurance market. I regret the decision of Bupa to withdraw from the market but that was its decision.

It is easy to say this measure could have been deferred but it is never too late to do the right thing. The Minister is doing the right thing in this case and I support the measure.