Michael Lowry (Tipperary North, Independent)
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Question 283: To ask the Tánaiste and Minister for Health and Children the reason for her decision to press ahead with risk equalisation; and if she will make a statement on the matter. [5180/06]

Michael Lowry (Tipperary North, Independent)
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Question 284: To ask the Tánaiste and Minister for Health and Children if her attention has been drawn to statistical information which details the number of persons expected to return to the public health system in the event of health insurance prices rising as a result of risk equalisation; and if she will make a statement on the matter. [5181/06]

Michael Lowry (Tipperary North, Independent)
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Question 285: To ask the Tánaiste and Minister for Health and Children if her attention has been drawn to expert advice given to Government which acknowledges that any levy imposed on current private health insurance operators will deter new market entrants, thereby restoring the State monopoly; and if she will make a statement on the matter. [5182/06]

Michael Lowry (Tipperary North, Independent)
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Question 286: To ask the Tánaiste and Minister for Health and Children if her attention has been drawn to the proposals developed for the Joint Committee on Health and Children regarding risk equalisation when she took the decision to implement risk equalisation; and if she will make a statement on the matter. [5183/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 283 to 286, inclusive, together.

On 23 December 2005, I made the decision that the commencement of risk equalisation transfers between insurers in the market was necessary having carefully considered the report submitted by the Health Insurance Authority and the subsequent representations made by insurers in the market. I did so in accordance with the provisions set out in the risk equalisation scheme and in the Health Insurance Acts, having regard to the best overall interests of health insurance consumers.

There is widespread support in this country, reflected in the decisions of the Oireachtas, for applying community rating to health insurance. Under community rating subscribers pay the same amount for similar cover throughout their lives. Risk equalisation is a necessary mechanism to support a community rated health insurance market and provision for risk equalisation has been part of the regulatory framework for health insurance since the enactment of the Health Insurance Act 1994. The risk equalisation scheme, 2003, having been affirmed by this House, took effect from 1 July 2003. The scheme had previously been submitted to the European Commission which, in May 2003, found that the scheme is justified, given the open enrolment, community rating and lifetime cover requirements that apply in our health insurance market.

The Deputy refers to expert advice received by the Government which he says states that risk equalisation transfers will deter new market entrants, thus restoring the State monopoly. The Health Insurance Acts specifically provide for competition to be taken in to account. They state that the best overall interests of health insurance consumers include the need to maintain the application of community rating across the market for health insurance and to facilitate competition between undertakings.

I am satisfied that the decision made to commence risk equalisation was the correct one and the question of reviewing it does not arise. I do not consider that it would be appropriate at this time to enter into further details in relation to the matters raised given that they are before the courts.