Tom Fleming (Kerry South, Independent)
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To ask the Minister for Health if he will introduce a health insurance scheme that is fair and affordable for families and persons at an early date in view of the fact that thousands can no longer afford the rising costs of existing policies that are to be the subject of further increases in the new year; and if he will make a statement on the matter. [48734/12]

James Reilly (Dublin North, Fine Gael)
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I am very aware that health insurance is becoming harder to afford, in particular for older people, as insurers increasingly tailor their insurance plans towards younger, healthier customers. The Government is committed to keeping down the cost of health insurance so that it is affordable for as many people as possible and is also strongly committed to protecting community rating, whereby older and less healthy customers should pay the same amount for the same cover as younger and healthier people.

To support the principle of community rating, the Programme for Government contains a commitment to put a permanent scheme of risk equalisation in place. This is a key requirement for the existing private health insurance market and is designed to keep health insurance affordable for older persons and to maintain the stability of the market. I was pleased, therefore, to recently publish the Health Insurance (Amendment) Bill, 2012 on 18 October, to give effect to a new Risk Equalisation Scheme (RES) to be applied from 1 January 2013. An effective and robust RES is required in the Irish private health insurance market in order to protect affordability for those who need it most.

There can be little doubt that price increases will make it more difficult for persons who hold private health insurance to renew their policies. I have consistently raised the issue of costs with health insurers and am determined to address costs in the sector in the interests of consumers. I will continue to focus strongly on this issue.

I would also strongly advise consumers to shop around for the health insurance plan that best suits their needs. Consumers have a legal right to switch between or within insurers to get better value and to reduce their premium costs. All consumers should carefully consider the full range of plans and levels of cover available within the market, so that their own needs are fully met. Where customers wish to switch products, the relevant health insurance legislation ensures that switching is as easy and seamless as possible for customers. The evidence to date is that many people are changing their product choice or insurer following significant price or product changes. It is not open to a company to refuse a customer of another insurer the same level of cover. All plans are available to all customers, regardless of whether you are an employee of a particular organisation or not. Policy holders can switch to the same level of cover without waiting times for cover to apply.

In addition to the choices available to consumers in the health insurance market, the Government's clear objective is for the health insurance market to remain as competitive and affordable as possible, as we move towards a new system of Universal Health Insurance.