Written answers

Thursday, 30 June 2011

Department of Enterprise, Trade and Innovation

Health Insurance Levy

5:00 am

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 115: To ask the Minister for Jobs; Enterprise and Innovation his views on the VHI's treatment of the health insurance levy whereby customers seeking to move to a different insurer must pay the levy for the unexpired part of the year; if he considers that this is inhibiting competition; if he will direct the Competition Authority to take action in this regard; and if he will make a statement on the matter. [18149/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The health insurance levy is first and foremost a matter for the Minister for Finance while the Minister for Health has overall responsibility for health insurance. I have no direct role in this area. I understand however that the levy, which is a replacement for the risk equalisation scheme deemed by the Supreme Court as an illegal state aid, was introduced to uphold the principle of community rating in the health insurance market.

The Competition Authority is the statutory body responsible for the enforcement of competition law in the State. Section 29 (3) of the Competition Act 2002 provides that the Competition Authority is independent in the performance of its functions. If the Deputy has concerns about alleged anticompetitive practices in this or in any sector I urge her to bring these concerns to the attention of the Competition Authority.

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