Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

I am taking this debate on behalf of the Minister for Health, Deputy Varadkar, who is on Government business elsewhere and regrets that he cannot be here. I thank the Senator for raising the issue as it gives me an opportunity to update the House on this important matter. Community rating, reflecting the principle of intergenerational solidarity, is a fundamental cornerstone of the health insurance system. This means people who are old or sick do not have to pay more than the young and well. Under community rating, the level of risk that a particular consumer poses to an insurer does not directly affect the premium payable. For community rating to work, we depend on a constant influx of younger, healthy people taking out health insurance to help keep premium prices down for everyone. This is why lifetime community rating is being introduced, to encourage people to take out health insurance at a younger age, thereby helping to spread the costs of older and less healthy people across society. This helps to support affordable community-rated premiums for everyone who wishes to purchase health insurance.

From tomorrow, there will be late entry loadings for those aged 35 and over taking out health insurance for the first time. The loadings are set at 2% per year starting at age 35, up to a maximum loading of 70% at age 69 and over. Crucially, people of all ages can avoid loadings by taking out health insurance before the end of the grace period at midnight tonight. Since the start of March, the Health Insurance Authority has been running a public information and awareness campaign around lifetime community rating to publicise this significant change. The campaign includes a nationwide advertising campaign in the run-up to the 30 April deadline, running across various separate media platforms including television, radio, print and the Internet, to reach as many people as possible and to inform the public of the impending change. In addition, the insurers have been running their own individual media campaigns to inform the public and have developed web-based information tools to provide any additional information required.

Following the expiry of the grace period, there are exemptions available to help limit the level of loadings that can apply.Previous periods of health insurance cover are taken into account in calculating the loading that may apply. In addition, a credited period, in total not exceeding three years, is also available for individuals who previously had health insurance but relinquished cover since 1 January 2008 due to unemployment. In such cases, the level of loading will be reduced by the relevant credited period or periods.

The Health Insurance Authority will have updated market figures for the April to June period available at the end of July. However, insurers have confirmed high levels of Internet traffic and telephone contact from people as the grace period draws to a close, and the insurance companies are confident that they are fully ready to deal with any last minute upsurge, with telephone lines open late all this week. Any increase in the number of younger insured persons will have a positive impact on the market as a whole. In addition, the measure will also encourage people to retain health insurance once they have it, which in turn will help to keep premium prices down for everyone.