Minister of State for Health Dr Jimmy Devins introduced a Bill which, he said, provided for the most significant changes governing the VHI since it was set up 50 years ago.
He said the primary purpose of the Voluntary Health Insurance (Amendment) Bill 2007 was to oblige the board to achieve authorisation from the Financial Regulator as an insurer and to provide it with a structure that supported an application for authorisation. "This involves giving commercial freedom on products and pricing to the VHI."
He said the Bill also provided for amending the definition of a health insurance contract in respect of cash plans.
Dr Devins said the VHI found itself in the anomalous position of being both the market leader in the health insurance market as well as an unauthorised insurer. The company's competitors considered this a competitive advantage.
Although the present statutory arrangements also imposed a number of restrictions on the VHI, the Government recognised that the derogation could not continue.
"It considers that it is in the best interests of the health insurance market and VHI that the company attain authorisation as an insurer in the shortest possible timeframe, and be subject to the same prudential regulation as other commercial insurers."
