Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 28: To ask the Minister for Health in the context of his plans for universal health insurance, his intentions for the VHI; if it will be broken up; and if he will make a statement on the matter. [16471/12]

James Reilly (Dublin North, Fine Gael)
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The Programme for Government provides for the VHI to remain in State ownership in order to provide a publicly-owned health insurance option when the new system of Universal Health Insurance (UHI) is introduced. Last year I appointed financial and legal advisors to make recommendations on options to address the current imbalance in the private health insurance market. e advisors were invited to consider all options - including, but not limited to, a break-up of the VHI.

I am currently examining how best to address the imbalance in the structure of the private health insurance market in the overall context of a move towards UHI. This is being considered against a backdrop of the European Court of Justice Case regarding the VHI's derogation from the EU Non-Life Directives which had exempted it from the requirement to be authorised by the Central Bank. e Court ruled against the State on 29 September last.

e Department will continue to work with the Commission to progress a range of issues relating to the legal status of the VHI. It is making good progress in relation to these and will press ahead with them as planned.