Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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106. To ask the Minister for Health the total annual cost of subsidies or other expenditure by the State made to private health insurance for the risk equalisation mechanism for the past three years. [10699/15]

Leo Varadkar (Dublin West, Fine Gael)
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No subsidy or state expenditure occurs under the Risk Equalisation Scheme. The Scheme is designed to be Exchequer-neutral, and is neither a cost nor a benefit to the State.

The Stamp Duty Consolidation Act provides for the collection of the community rating levy by the Revenue Commissioners from insurers in respect of all policies written. The Health Insurance Acts provide for all of the monies collected to be paid over to the Risk Equalisation Fund, which is administered by the independent regulator, the Health Insurance Authority.

This legislation further provides that the Authority redistributes the fund back to the market through credits payable to insurers in respect of insured older lives (aged 60 and over) to offset some of the additional cost of insuring older and less healthy members and pays a credit to insurers in respect of overnight stays in hospital for all ages. This allows all insured persons to continue to pay the same net amount for a given health insurance product and helps to support affordable premiums for all.