Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Central Bank of Ireland is the regulator for prudential and solvency purposes. Typically, insurers, including private health insurers, must satisfy various appropriate prudential requirements. These requirements apply generally to all insurance and financial services companies and relate to matters such as financial operation and investment policies. The Health Insurance Authority, or HIA, is the independent regulator for the private health insurance industry. It is the statutory body charged with the administration of the risk equalisation scheme under section 11 of the Health Insurance (Amendment) Act 2012. It has been proposed in the past to merge the HIA and the Central Bank. I assume it is in this context that the Senator envisages the risk equalisation scheme coming under Central Bank direction. Such a proposal requires careful examination, in particular in regard to how it would fit in with the commitment in the programme for Government to move to a system of universal health insurance.

As outlined in Future Health; a Strategic Framework for Reform of the Health Services 2012-2015, the universal health insurance market will be subject to regulation. A new insurance fund will have an important role in directly financing and centrally controlling some health care costs while managing risk equalisation payments. The future role of the HIA and the delivery of its functions in the universal health insurance system are matters which will be considered by Government as detailed proposals for universal health insurance are developed.

The permanent risk equalisation scheme introduced by my colleague, the Minister for Health, Deputy James Reilly, has EU approval and the HIA as the appropriate statutory authority has responsibility for the risk equalisation fund and the administration of the scheme. I presume the Senator's intention is to prevent or postpone the commencement of the permanent risk equalisation scheme but it is already in place by virtue of the Health Insurance (Amendment) Act 2012. The import of the section before the House is to put beyond doubt that the standard-rate income tax credit is based on the premium net of any risk equalisation credit which is a position similar to that which obtained during the interim risk equalisation scheme when the standard-rate income tax credit was net of the former age-related income tax credits. The section, therefore, has no bearing on the commencement of the risk equalisation scheme and the Senator's recommendation would not have its presumed intended effect. Therefore, I do not propose to accept the recommendation.