Finian McGrath (Dublin North Central, Independent)
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Question 638: To ask the Minister for Health and Children the position regarding and clarification of the BUPA issue. [43929/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I regret BUPA's decision to leave the Irish market and have endeavoured to achieve a solution that would enable BUPA to remain, but would also protect the fundamental principles of the regulatory framework, and in particular, community rating.

Following the High Court decision last November, a meeting was arranged between BUPA senior management and myself in an attempt to facilitate the company remaining in the Irish market. Since that initial meeting further discussions have taken place with BUPA. Unfortunately, it did not prove possible to reach an agreement which BUPA would accept would allow them to stay in the market. However, BUPA has advised that its members will be covered for the duration of their existing contracts and I acknowledge BUPA's commitment to their members in this regard.

Subscribers who are unable to renew their cover with BUPA are entitled, under open enrolment regulations, to move to another insurer without penalty for a similar level of cover to that held with BUPA. They will not be subject to any additional waiting periods before cover takes effect and will not have to re-serve any waiting periods already served, whether in respect of initial cover or in respect of pre-existing conditions as long as the break in cover does not exceed 13 weeks.

It is important that we have a healthy and competitive market for health insurance. The objective of the legislative and regulatory framework which the Government has put in place is to ensure that competition in the market works to the benefit of all health insurance subscribers. The Government is committed to ensuring that this remains the case. To that end, I have appointed a three person group to carry out a business appraisal of the health insurance market in Ireland. The group is to provide their view as to whether an adequate rate of return is available in the Irish health insurance market to insurance undertakings in the current conditions, whilst maintaining community rating. I have asked the Group to report back to me by the end of March.

In the meantime I have just received the views of the Competition Authority and the Health Insurance Authority on the issue of sustaining fair competition in the market. The proposals contained in the Reports will be given careful consideration by Government with a view to advancing competition in the market and addressing any barriers identified.