Mattie McGrath (Tipperary, Independent)
Link to this: Individually | In context | Oireachtas source

535. To ask the Minister for Health the efforts being made to alleviate the spiralling costs of health insurance; the supports available to those under 35 years of age who are of the view that they were pressurised by the Government to take out health insurance or be penalised due to the impact of the lifetime community rating; if he will review this policy; and if he will make a statement on the matter. [17826/17]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Insurance companies operate as commercial providers and as Minister for Health, I have no legal power to intervene in relation to any insurer’s pricing policies. The overall claims experience is influenced by a number of factors such as the cost of claims, the cost of care, the age profile of those holding private health insurance and ongoing medical innovations. Each of these are contributors to the cost of premiums payable.

A community-rated health insurance market depends on inter-generational solidarity and requires a constant influx of young healthy members to support the older, less healthy members. In 2015 two policy measures were introduced to ensure the ongoing viability of community rating - Lifetime Community Rating and Young Adult rates. Lifetime Community Rating was designed to encourage people to take out health insurance at a younger age and to retain it. Young Adult rates are based on a sliding scale of maximum chargeable rates up to age 26. This approach ensures the phasing-in of full adult rates and eases the effect of the dramatic price increases when student rates no longer apply. 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 positive impact of these initiatives on the market is now evident, as the number of people holding private health insurance has increased to 2.152 million, or 46% of the population (end-December 2016). Critically, these figures include a total of 240,025 insured lives in the age cohort 25-35 years (an increase of 13,785 compared to end-December 2015), which contributes positively to keeping health insurance affordable for those who wish to avail of it.

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 completed its public consultation process as a first phase of its review. Members of the public were invited to submit their views before the deadline of 3 March 2017. The HIA are now in the process of considering all of the submissions received and will submit its report and recommendations to me in due course.