Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 121: To ask the Tánaiste and Minister for Health and Children the reason she decided not to proceed with the implementation of risk equalisation due to the recommendation of the Health Insurance Authority; if her attention has been drawn to the serious problems created for the VHI as a result; if she has received representations from the VHI to proceed with risk equalisation; if she has received another report from the Health Insurance Authority on the issue; and if she will make a statement on the matter. [28786/05]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

I decided last June not to commence risk equalisation transfers, having considered the recommendation of the Health Insurance Authority and the subsequent representations made by health insurance undertakings. This also allows time for further corroboration of observed trends in the market. I am due to receive the authority's fourth report by the end of this month.

The VHI has made a number of representations highlighting the need for risk equalisation. Following my decision not to introduce risk equalisation last June, the VHI, within the context of its submission outlining its proposed price increase, and in a separate submission on the company's annual report and accounts, has continued to emphasise the significance of risk equalisation for the future of the company.

The provisions of the Health Insurance Acts provide that in considering whether risk equalisation transfers are warranted in the best overall interests of health insurance consumers, there should be reference to the need to maintain the application of community rating across the market and to facilitate competition between undertakings. Any decision on the commencement of risk equalisation cannot therefore be taken by reference only to the position of any one company in the market.