Bernard Durkan (Kildare North, Fine Gael)
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78. To ask the Minister for Health the extent to which he continues to monitor the various issues affecting the cost of private health insurance; if he has identified any particular contributing factors, if he will take specific action arising therefrom; and if he will make a statement on the matter. [9298/16]

Leo Varadkar (Dublin West, Fine Gael)
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Insurance companies operate as commercial providers and, as Minister for Health, I have no legal power to intervene in relation to any insurer’s prices. The cost of private health insurance is influenced by a number of factors such as the number of persons in the market, the age profile of those holding private health insurance and ongoing medical innovations. Each of these are contributors to the cost of care, the cost of claims and therefore the cost of premia payable.

Since my appointment as Minister, keeping the health insurance market stable and increasing the numbers taking out health insurance has been one of my key priorities. An increase in the numbers taking out health insurance helps to control premium inflation, thereby keeping health insurance more affordable for everyone. Lifetime Community Rating Regulations came into effect from 1 May 2015 and late entry loadings now apply for people aged 35 and over when taking out health insurance for the first time. This encourages people to take out health insurance at a younger age, thereby avoiding loadings and helping to spread the health costs of older and less healthy people across all insured persons. In addition, 'Young Adult’ rates of premium, which are based on a sliding scale of maximum chargeable rates up to age 26, also apply from May 2015. These discounts encourage younger members to remain in the insured market. Without these measures, there would be a continued deterioration in the age profile of the insured population, which in turn would contribute to claims inflation and result in higher insurance premiums.

The impact of these initiatives on the market can now be seen, as the number of people now holding private health insurance is 2.126 million, or 45.9% of the Irish population (end-March 2016). This represents an increase of over 95,000 members on the previous 12 months, which contributes positively to keeping health insurance affordable for those who wish to avail of it.