Liam Twomey (Fine Gael)

The section provides for a levy on private health insurance. The question I have goes back to when the new leader of Fianna Fáil was Minister for Health and it relates to the VHI's reserves. Why are VHI customers being hit so hard with levies and increased costs given we have never been given a clear answer as to why VHI needs a capital reserve of 40% when it could be 25%? Has the Department of Finance considered reducing the reserve ratio from 40% to 25%? There is no need for a health insurance company to have a reserve of 40% because it does not encounter the issues a normal insurance company faces. For example, a health insurance company does not have to deal with flooding and burst pipe claims and so on like a normal insurance company. Such companies require a reserve of 40% but private health insurance companies could get by with a reserve of 25%. Has the department ever examined this? This would prevent penal levies being applied to customers on top of penal increases in their health insurance premia. I was Fine Gael spokesperson on health between 2004 and 2007 in the Dáil. Deputy Martin was supposed to deal with this issue when he was Minister for Health, as was Deputy Harney, when she succeeded him. Unfortunately, we have never been given a clear answer on this.