Insurance Proposals Get Guarded Response
THE GOVERNMENT’S move to protect people over 50 from having to pay a steep increase in their health insurance bills received a conditional welcome from Labour Party health spokeswoman, Jan O’Sullivan, but she said more details were needed before a final judgment could be made.
She said the scheme had to be introduced because of the botched attempt by the Government to introduce a risk equalisation scheme to ensure fair play for all categories of people taking out private health insurance.
“The principle of risk equalisation is a well-established feature of the health insurance market throughout Europe. It is designed to compensate companies like the VHI, which have older and more costly members and thus allow them to compete with companies that have younger members with fewer claims.
Ms O’Sullivan added that the entire saga reinforced the case for universal health insurance that would end the two-tier nature of the health service and ensure fair and equal treatment.
Fine Gael health spokesman, James Reilly said the new health insurance plan meant that consumers would now be paying for the Minister’s botched legislation on risk equalisation.
“The interim nature of these measures must cause concern. Whenever a new risk equalisation scheme actually materialises, the price hikes associated with today’s levy will have already hit consumers without any true financial justification being given for them. In fact private health insurance subscribers will be the victims of just another stealth tax.”
“Risk equalisation may be gone, but community rating still applies and therefore no selective premium increases based on age can be enforced. Furthermore, any increase must be approved by the Minister under law. People will be asking if they are being conned yet again,” he said.
Tags: fair play, final judgment, health insurance bills, health insurance market, health insurance plan, health service, insurance proposals, interim nature, james reilly, labour party, new health, o sullivan, private health insurance, stealth tax, steep increase, tax risk, universal health insurance
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