Statement from Vhi re Health Insurance (Amendment ) Bill 2016

11th November 2016 - Vhi supports the Government Policy of Community Rating and welcomes the proposed changes to the Risk Equalisation Scheme as outlined in the Health Insurance (Amendment Bill) 2016.  This represents another step in the right direction and will help keep health insurance affordable for older and sicker people.  Today’s announcement has increased the support required for older customers but more needs to be done to support sicker customers by strengthening the health status aspect of the scheme . The Irish Private Health Insurance Market is Community Rated - this means that everyone is charged the same price for the same health insurance product irrespective of their age or how sick they are. For Community Rating to operate an effective Risk Equalisation Scheme is essential. Community Rated health insurance markets the world over are supported by very robust risk sharing systems.

The levy paid is not inflationary . Every cent collected is given back . The Risk Equalisation levy  money collected goes into a pool which is managed by the Health Insurance Authority and is redistributed back to the health insurance companies in favour of older and sicker people . This is good for the overall market.

  ENDS

Vhi_Press

11-Nov-2016