Extract from Michael Kitt, T.D’s Speech on the Health Insurance Miscellaneous Bill, 2008

Posted on 26/05/09 by Michael P Kitt This Bill seeks to ensure a degree of subsidisation for older people who avail of health insurance in the wake of the Supreme Court decision last July whereby the risk equalisation scheme was ruled illegal. That decision obliges us to ensure a means of providing subsidy for those who would find it difficult to pay high premia. Health insurance plans can be tailored for older and younger people at totally different prices. The analogy that was made in regard to motor insurance companies is a good one. As we all know, young people pay far more than older, more experienced drivers for car insurance. In the context of health insurance, the concern has been that the opposite would be the case, with older people facing far higher premia than younger people. This legislation will allow health insurance companies to focus on the quality of cover they provide and the provision of additional services to consumers rather than the risk selection which would cause major difficulties for older customers.

We are all concerned that there should not be an intolerable expense for people in ensuring they are covered for any operations they may require, such as hip replacements, cardiac procedures or cataract removal. Such procedures are more likely to be required by older people.

The Bill sets out the various levies and subsidies applicable to those under 50, over 50 and over 80 years of age. These are interim measures, applicable for three years, to stabilise the market.