Lisa Chambers (Mayo, Fianna Fail)
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543. To ask the Minister for Health the reason members of the Defence Forces whose conditions of service provide for a range of medical health care provisions equivalent to that of a private health plan are nonetheless being obliged to purchase private health insurance plans to avoid lifetime community rating loadings when they retire; and his views on whether it is unfair to effectively compel members of the Defence Forces to purchase private health insurance which they will not need while they are in service. [4156/17]

Simon Harris (Wicklow, Fine Gael)
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Our system of voluntary community-rated health insurance relies on the continued entry of younger people, to help keep premium prices down for everybody. Lifetime Community Rating (LCR) was introduced to the private health insurance market from 1 May 2015, to encourage people to take out insurance at a younger age. It introduced late entry loadings on health insurance premiums for those aged 35 years or older taking out private health insurance for the first time. Without LCR there would be a deterioration in the age profile of the insured population, which in turn would contribute to claims inflation and higher premiums for all.

The medical arrangements in place for Commissioned Officers of the Defence Forces are not private health insurance plans. Given they are not private health insurance plans, they cannot comply with the key principles of community rating, open enrolment, lifetime cover and minimum benefits as required under the Health Insurance Acts.

Private health insurance in Ireland is optional and, similar to any other individual or groups in Ireland, there is no statutory obligation on members of the Defence Forces to purchase private health insurance plans. Where people choose to purchase private health insurance, the application of loadings under LCR applies consistently to all residents of the State, whether purchased during periods of employment or during retirement.

A review of the Lifetime Community Rating regulations, after 30 April 2017, is provided for in the legislation. The independent regulator, the Health Insurance Authority (HIA), has already commenced its public consultation process as the first phase of its review. A consultation paper to inform and assist those who may wish to make a submission can be viewed on its website . Proposals will be accepted before the deadline of 3 March 2017. When the HIA concludes its review and submits its report to me, I will consider any recommendations made with an open mind.