Frank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I thank Senators for their support for the Bill and for their contributions to the debate.

Health insurance is held by a very large proportion of people in Ireland relative to other countries. As Senator Hoey pointed out, 45% of the population is quite large by European standards. Community rating is a fundamental cornerstone of the Irish health insurance system. This means people who are old or sick do not have to pay more than the young and healthy, whereas in other health insurance systems the level of risk that an individual presents directly affects the premium paid. This objective is supported by a risk equalisation scheme which aims to keep health insurance affordable for older and less healthy citizens. Under this scheme, all the money raised in levies from insurers is paid into a fund for the sole purpose of supporting the market in the form of credits payable.

To recap, the purpose of this Bill is to specify the revised credits and corresponding stamp duty levies to apply on health insurance policies from April 2021. Against the background of some uncertainty about the impact of Covid-19 on the health insurance industry, the credits and levy rates for next year strike a fair balance between the need to support community rating while maintaining sustainability of the market at a time of uncertainty. This Bill allows us to maintain our support for the core principle of community rating, which is long-established and well-supported Government policy for the health insurance market. The Bill will ensure that we can continue to provide the necessary support to ensure that the costs of health insurance are shared across the insured population.

In reply to Senators Hoey and Gavan regarding health insurance for non-EEA students, I am not sure whether it is appropriate to deal with it in this Bill which only applies to risk equalisation. I will ask departmental officials to discuss the matter with the Senators to see if we can sort it out. I understand that it concerns non-EEA students studying in Ireland and hopefully the officials will find a way to resolve that. I will set up a meeting in the coming days to try to sort it out.

I thank Senators for their contributions and hope that we can pass this very necessary Bill in the coming days.