Sean Barrett (Independent) | Oireachtas source

I thank the Minister of State and I will not be pressing the recommendation. He has presented the issues well and fairly. There is a duty among the rest of us to help old people. That is the meaning of risk equalisation. However, the duty to help the old people is distributed in a bizarre way which actually hurts hardest the poorest people in the working group.

It is distributed in a bizarre way which actually hurts the poorest working people hardest. When Mr. Elderfield took over regulation of this sector the press releases showed that the Department and the VHI seemed to have completely different interpretations of the meaning of risk equalisation. We will be keeping a close eye on all measures to do with risk equalisation.

The Minister is compelled by the legislation to impose a tax on working people in order to support the old and this measure has wide support. However, how much of it goes to supporting inefficiencies in the health service, which are fairly legendary at this stage. For example, the person who chooses the plan called HealthSteps gold will pay ¤320 and the levy on that is ¤290 which is 91% of the cost. If one were rich enough to go right up to First Plan Plus Level 2, the tax rate drops to 22%. We all share the burden to look after old people but those among the working population who can barely afford health insurance must pay the most in terms of the percentage rate because it is a flat rate charge.