Michael Harty (Clare, Independent)
Link to this: Individually | In context | Oireachtas source

403. To ask the Minister for Health his views on whether supporting the health insurance industry with community rating, risk equalisation and tax expenditure runs contrary to the medium and long-term aims and objectives of Sláintecare; and if he will make a statement on the matter. [50655/18]

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

Community rating, where risk is shared across all the community of insured people, ensures solidarity with and more affordable premiums for less healthy people and for older people. In effect, everyone pays the same amount of money for the same level of health insurance coverage, regardless of their age or health status.

Risk equalisation is essential to underpin community rating, as without it insurers with older and sicker customers would be forced to charge higher premiums. It is important to note that risk equalisation is Exchequer neutral: stamp duty is charged on each health insurance contract and redistributed to insurers based on their risk profile.

The voluntary private health insurance market in Ireland is proportionately one of the largest in the world. Given the fact that over 45% of Irish people hold health insurance, it is appropriate that our health insurance system is community-rated and is supported by risk equalisation. There is long-standing and cross-party political support for community rating, which is reflected and reaffirmed in the Oireachtas each year during the passage of the Health Insurance Bill.

The Sláintecare report anticipates that implementation of its reform programme will have an impact on the demand for private health insurance in Ireland, as enhancements and changes are made to the public health system. There is close and robust regulation of the health insurance market on an ongoing basis. In the coming years, we will continue to ensure that the regulatory regime in place is appropriate to the size of the market and to the role played by private health insurance within the healthcare system.