Billy Kelleher (Cork North Central, Fianna Fail)
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Question 372: To ask the Minister for Health and Children if he plans to sell the Government stake in VHI. [12517/11]

Billy Kelleher (Cork North Central, Fianna Fail)
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Question 373: To ask the Minister for Health and Children if he will implement the recommendations of the Millman report; if he has met with the VHI to ask them to reduce their costs; and if he will make a statement on the matter. [12518/11]

Billy Kelleher (Cork North Central, Fianna Fail)
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Question 374: To ask the Minister for Health and Children if he will ensure the VHI will meet its solvency requirements as set out by the Regulator; and if he will make a statement on the matter. [12519/11]

Billy Kelleher (Cork North Central, Fianna Fail)
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Question 375: To ask the Minister for Health and Children if he has raised the issue of the VHI's solvency requirements with his colleagues in the EU; and if he will make a statement on the matter. [12520/11]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 372 to 375, inclusive, together. The VHI continues to be exempt from prudential solvency requirements arising from a derogation under the 3rd Non-Life Directive. The Voluntary Health Insurance (Amendment) Act 2008 provided for the VHI to acquire sufficient funding in terms of its capital reserves to enable it to make an application to the Financial Regulator for authorisation. The date by which the VHI must accrue the necessary reserves is set at 1 January 2012.

Officials from my Department are maintaining regular contact with the European Commission to update them on progress regarding the implementation of plans for the insurance market and the VHI, including solvency issues. The most recent meeting took place on 9 February 2011 in Brussels and further written communications have since been exchanged.

The programme for Government provides for the VHI to remain in State ownership. I have recently agreed to the appointment of financial and legal advisors to make recommendations on options to address the current imbalance in the private health insurance market. The advisors have been invited to consider all options - including, but not limited to, a break-up of the VHI.

I have previously expressed my concerns with regard to VHI's significant claims costs, much of which were outlined in the Milliman review of VHI's claims. My Department is working closely with the VHI on this issue. In this regard, I note VHI's recently announced financial outturn for 2010, which shows a significant improvement over the 2009 overturn. While much remains to be done for the VHI to achieve sustainability, a continued focus on the control of costs will be of considerable assistance to the company.