James Reilly (Dublin North, Fine Gael)
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Question 290: To ask the Minister for Health and Children the progress made in relation to the Programme for Government commitment to take measures to support a competitive health insurance market and to continue support for community rating; and if she will make a statement on the matter. [26810/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Significant progress has been made in relation to the commitment through implementation of the recommendations contained in the market reports of the Competition Authority, the Health Insurance Authority and the Barrington Group that the Government decided would be appropriate to implement. Matters addressed include the removal of the 3 year exemption from risk equalisation, enactment of VHI legislation, development of the Health Insurance Authority's campaigns on consumer information and its agreement with the insurers concerning information notices to be included with annual renewals. In addition the Authority is currently examining the question of the level of cover to which community rating should apply and is also giving consideration to the recommendation on moving to a prospective form of risk equalisation.

Enactment and commencement of the Voluntary Health Insurance (Amendment) Act 2008 also addresses a number of issues considered in the three reports. Inter alia, the Act provides for the removal of the obligation on the VHI to submit products and proposed premia increases to the Minister for approval and it obliges the VHI to apply to the Financial Regulator for authorisation.

As I outlined to the Joint Committee recently consultations have taken place with the insurers on draft Lifetime Community Rating Regulations that had been prepared. Related amendments to the Open Enrolment Regulations are also envisaged. I would hope to submit these Regulations to the Houses for affirmation in the Autumn. The Deputy will appreciate that these and any other amendments to the framework that may be considered appropriate must await delivery of the Supreme Court judgement in BUPA's appeal against the High Court judgement that upheld the regulatory framework. Since that judgement, the Court of First Instance earlier this year affirmed the EU Commission's positive assessment of May 2003 that recognised risk equalisation as a necessary and proportionate support to community rating.