Paddy Burke (Fine Gael)

I welcome the opportunity to say a few words on this legislation. I welcome the Minister of State, Deputy Moloney, and wish him well with the Bill. However, it will be very hard to vote in favour of it.

The Minister of State's speech was very complicated and the average person on the street could not comprehend from it what is to occur in regard to health insurance. Senator Twomey referred to some very important questions and figures associated with the Bill's implications for those who must pay for health insurance. At the very core of community rating is the concept that the introduction of the guidelines will encourage young people to continue to take out health insurance and that those who delay taking out cover until an older age will be liable for late entry loading, reflecting the fact that they did not contribute positively to the overall risk pool and intergenerational solidarity when in a position to do so. This was referred to by the Minister of State and Senator Corrigan. At what age will people be liable for late entry loading? At what age will one be relieved of the obligation of paying the penalty? Will there be a sliding scale such that one who avails of health insurance at 20 will not have to pay a penalty, one who avails of it at 30 for the first time will have to pay a small penalty, and one who avails of it at 50 for the first time will have to pay the full whack? It is very important to know this. It is necessary that everyone pay for health insurance because the more who pay, the lower the cost for everyone.

Senator Twomey implied the Minister of State is taking €150 million from people under 50. This is quite a considerable sum for young people who are at their wits' end trying to put bread on the table and pay for their mortgages, cars and kids at college. An adult is to be levied at €163 per year and each child at €53. The levies being imposed are driving up the cost of health insurance. It will be very difficult for the Opposition to vote in favour of a measure extracting €150 million from the pockets of those under 50. The Minister of State should explain whether the levy will be imposed on a graduated scale depending on one's age. Those with mortgages, car loans and kids at college will be hit hardest and will find payment very difficult. As Senator Twomey stated, they will be driven out of the market whereas we need to drive them into the market on the basis that costs will be lower for everybody if more pay for health insurance. Eventually the levy will drive competitors out of the market because they will not be able to afford to remain in it. One or two providers will be left in the market and they will be able to charge whatever price they want. The Minister of State needs to answer some of the questions raised by Senator Twomey.