Tommy Broughan (Dublin North East, Labour)
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Question 104: To ask the Minister for Health and Children if she will expand the regulatory and inspection functions of the Health Information and Quality Authority; and if she will specifically invigilate and regulate the pricing structures and services offered by companies (details supplied) especially in view of reports of proposed increased health insurance premiums in 2008. [33186/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Health Information and Quality Authority (HIQA) was established in May 2007. This represents a crucial element of the Health Reform Programme and is a new departure for the Irish Health Services.

A core function of the Authority is to set standards on safety and quality of health services and to monitor enforcement of these standards in an open and transparent way. The Act gives HIQA strong powers in this area in relation to services provided by the Health Service Executive and bodies funded by the Executive to provide health services on its behalf. The introduction of such regulatory regimes in the public sector in the first instance is a feature of such developments in other jurisdictions. The extension of these provisions to the private sector would involve further legislation of a complex nature.

In January 2007, I established the Commission on Patient Safety and Quality Assurance chaired by Dr Deirdre Madden. The Commission is developing proposals for a health service wide system of governance based on corporate accountability for the quality and safety of all health services. One of its terms of reference is to specifically examine and make recommendations in relation to a statutory system of licensing for both public and private health care providers and services. The Commission is expected to issue its report in mid 2008.

Companies offering health insurance contracts are obliged to comply with the regulatory framework provided for in the Health Insurance Acts and related regulations. The Health Insurance Acts (and regulations) have been enacted in the interests of the common good, providing for community rating, open enrolment and lifetime cover. Insurers are obliged to accept all persons who wish to avail of a health insurance contract offered, to do so for a standard premium (with limited exceptions that primarily relate to reduced rates for students and children), and to renew the contracts of persons. They are not permitted to discriminate on the basis of health status. Insurers offering cover are also required to provide a minimum level of cover across a range of services, including private maintenance charges in public hospitals, consultants fees, private hospitals charges, out-patient and maternity benefits, convalescence, psychiatric treatment and substance abuse.

Currently, the VHI is obliged to notify the Minister of proposed premium increases. However, the VHI Bill presently before the Oireachtas correctly provides for the removal of the Minister's involvement in premia increases. Prudential regulation is a matter for the Financial Regulator. Therefore, it is a matter for the insurer to determine the appropriate premium.