Richard Bruton (Dublin North Central, Fine Gael)
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Question 149: To ask the Minister for Health and Children her views on whether the health insurance premia for older and sicker persons will increase in view of the decision of the Supreme Court to strike down the risk equalisation scheme; the steps she is taking to stabilise the health insurance market and ensure community rating in order that health insurance remains affordable; and if she will make a statement on the matter. [32257/08]

Tommy Broughan (Dublin North East, Labour)
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Question 170: To ask the Minister for Health and Children her views on the effect of the Supreme Court's decision on risk equalisation; if she will introduce measures to protect the principle of community rating within the health insurance market; and if she will make a statement on the matter. [32151/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 149 and 170 together.

A primary objective of Government policy in health insurance is that it should be affordable for the broadest possible cross section of the community including older people and those who suffer ill-health. This policy objective has been implemented through a substantial body of primary and secondary legislation providing for open enrolment, community rating and lifetime cover. I have yet to hear any argument made against the continuing need for community rating. It is a fundamental principle of the health insurance market in Ireland. Following the liberalisation of the market in 1994 every political party and successive governments have supported the maintenance of community rating.

It is an inescapable fact, supported by international evidence, that community rating cannot be sustained without some scheme to support the higher claims costs of older or sicker people, effectively a risk equalisation mechanism. There may be differences of opinion in how such a mechanism must work, but few dispute the need for one. Although the Supreme Court found the particular Risk Equalisation Scheme to be ultra vires, it did not strike down the principle of applying risk equalisation or any of the other important elements of the regulatory framework that supports private health insurance in Ireland. However, the decision of the Supreme Court gives rise to some complex issues that now need to be addressed.

I am currently assessing all available options. Since the Judgement was delivered, I have engaged in consultations with officials, the Attorney General and the Health Insurance Authority. I also received submissions from and met with insurers in the market. There are complex financial, legal and policy matters involved. It is my intention to bring forward measures to ensure that health insurance remains affordable for older and sicker people at the earliest opportunity. I will be bringing such proposals to Government shortly.