John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Question 120: To ask the Minister for Health and Children the reason she did not act immediately on the advice from the HIA in relation to a possible loophole regarding risk equalisation payments for new entrants; her views on whether ignoring that advice means that a group (details supplied) and future so called new entrants will not have to pay risk equalisation payments; and if she will make a statement on the matter. [6293/07]

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

The question of whether companies entering the health insurance market by acquiring the business of an existing operation could avail of the three year exemption for new entrants was raised by the Health Insurance Authority (HIA) in July 2006 as part of the information collection phase of its study of competition in the market. At that point the HIA and the Competition Authority were undertaking a joint study of this issue. It appeared at that time that a company entering the market by acquiring the business of an existing undertaking could gain an exemption in a manner not intended by the Oireachtas when it enacted the legislation. However the Government's capacity to bring forward amending legislation at that time was circumscribed by the constitutional challenge to the risk equalisation scheme then before the courts. The High Court judgement in that case was not delivered until the end of November.

Following delivery of the judgement advice was sought on the matter. The advice confirmed that the potential loophole identified by the HIA did exist and I am taking further advice on that issue.

The Deputy will understand that I am unable to comment on any particular commercial transaction as I am not privy to the details of any agreement entered into by the companies concerned. However I can confirm that the Government remains committed to the maintenance of a community rated health insurance market and to ensuring that consumers in this market benefit from effective competition.