Trevor Sargent (Dublin North, Green Party)
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Question 65: To ask the Minister for Health and Children if she will confirm that a report by the Health Insurance Authority states that BUPA would have had to pay €37 million in risk equalisation payments if the schemes had been in place in the 12 months to June 2006; and if she will make a statement on the matter. [41450/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I announced on 23 December, 2005 that the risk equalisation payment provisions of the scheme would be commenced with effect from 1 January 2006. Taking account of the phasing factor of 50% applicable to risk equalisation payments for the first 12 months, the amount BUPA Ireland would have to contribute in risk equalisation payments would be half of the amount quoted by the Deputy for the 12 months ending June 2006.

The purpose of a risk equalisation scheme is to neutralise differences in insurers claims costs that arise due to variations in the age and gender distributions of their members. In a community rated market without risk equalisation, insurers with more favourable risk profiles have a regulatory advantage. The current Risk Equalisation Scheme reduces the advantage of insurers with lower risk profiles.