Health Insurance Health insurer's levy complaint could have huge implications for older people

[Sue Ellen]

According to mainly Indo on Saturday Level Health are to challenge a key rule around health insurance provision which could have huge implications for older people and those with complex conditions. They have filed a complaint with the European Commission over the subsidy scheme that means that everyone, regardless of their health status and other risk factors, can buy the same health insurance policy at the same price. It is known as risk equalisation. See here. It will be interesting to see the outcome

Charlie Weston: Why health insurer’s levy complaint could have huge implications for older people

A move by new insurance provider Level Health to challenge a key rule around health insurance provision could have huge implications for older people and those with complex health conditions.

www.independent.ie

 

[ClubMan]

But Dermot Goode of HealthInsuranceIreland.ie argues that if Level Health manages to get the support of the EU to have changes made to the system, it could lead to what he said would be a fairer risk-equalisation scheme. This could mean consumers get a better deal and the market would be more attractive to new entrants.

 

[Brendan Burgess]

Q: Why is Level Health challenging risk equalisation?

A: Level Health says it supports community rating. However, the company believes that the scale and design of the current risk-equalisation scheme, which gives effect to community rating, distorts the competitive landscape.

Rising levy rates have exacerbated these distortions, and reapproving the scheme without a substantial rethink would entrench and significantly deepen its anticompetitive effects for years to come, it said.

Q: What does it want?

A: Level Health wants to retain risk equalisation, but instead of the levy being the same set figure imposed on all those with health cover, it wants it based on a percentage of the premium.

It also wants the levy, which is also called stamp duty, removed from children’s policies. And it wants regular reviews of the scheme to ensure the market remains competitive.

...

At the moment, a young person paying €1,000 for their plan sees around half of that going to pay the risk-equalisation levy. But someone with a gold-plated plan costing €10,000 only see 5pc of their premium accounted for by the levy.

 

[Brendan Burgess]

It probably makes sense to have some form of risk equalisation at the basic levels of cover.

But should we be subsidising those elderly citizens, like myself, who avail of the Blackrock Clinic and Mater Private?

A review is a good idea.

 

[JoeRoberts]

They should also challange the mandatory maternity cover that pushes up premiums for the general population, including those happy to use the excellent public maternity system.