Fall in health insurance holders, says Brady

THERE IS "some evidence of a small decline" in the number of people with health insurance in the first quarter of 2009, according to Minister of State for Health Áine Brady.

The Minister told the Dáil that the “closure or downsizing of companies which paid private health insurance on behalf of their employees or made contributions” contributed to the drop, as did increasing unemployment.

“However, the cost of health insurance for employers has to be considered in the context of the overall aim of the scheme and maintaining intergenerational solidarity in particular.”

Ms Brady said that the overall effect of the health insurance levy was neutral. “Where premia have been increased by insurers, this simply reflects the age profiles of the insurers concerned and the fact that in the absence of a risk equalisation mechanism they have not been contributing to intergenerational solidarity across the insured population.” She said “the reality is that all persons in a community rated market should be paying a premium that supports the application of community rated health insurance across the entire market”.

The Minister was speaking as she concluded the introductory debate on the Health Insurance Bill which aims to “ensure that access to health insurance cover is available to all consumers regardless of age and health status” and to “enhance intergenerational solidarity”.

Speaking during the debate Sinn Féin health spokesman Caoimhin Ó Caoláinsaid he was "no advocate of private health insurance". He warned of the "clear need to protect our health system from a predatory approach by health insurers which would see older people and people with illnesses being forced to pay higher health insurance premiums".

He claimed that the “Government has allowed our public health services to deteriorate so much that many people believed they needed the added cover provided by private health insurance, despite its burdensome financial cost”.

The Bill goes to committee next month.