Description

The Department of Health ('4the Department" requested that the Health Insurance Authoriity provide a Report to the Minister ~'in anticipation of the enactmentofthe Health lnsuran.ce (Amendment) Bill2012". The Department requested that the Report include an eval1uatjon and analysis ofRetums for the period 1 July 2011 to 30 June 2012 and the Authoriity's conclusions in relation to what credits and stamp duty would be appropriate assuming that the Health Insurance (Amendment) BiU 2012 is enacted as initiated (apart from proposed amepdments included in a document circulated at the Health Insuranoe Consulltative Forum on 14 November 20 12). The Department requested that the Authoriity's conclusions would have regard to the criteria set out in the Bill mcluding the proposed amended section 7E of the Bill, which would provide for Reports to include the following: (i) An evaluation and analysis in respect of information returns relating to the period 1 July 2011 to 30 June 2012 (ii) suclh matters concerning the carrying on ofhealth insurance business and developments in relation to health insurance generally that the Authority considers ought to be brought to the attention of the Minister (including information in relation to the profitability of any registered undertaking or former registered undertaking where th(;: operation of the proposed relevant financial provisions would be expected to result int a positive cumulative net financial impact on the undertaking) (iii) subject to subsection (lA), the amounts of the risk equalisation credits that th•~ Authority considers, after having regard to such evaluation and analysis, would need to be afforded, under the proposed Risk Equalisation Scheme, to persons insured by registered undertakings (other than restricted membershjp undertakings) having regard to the principal objective (in so far as the principal objective relates to relevant contracts), the aim of avoiding overcompensation being made to a registered undertaking or former register-ed undertaking under the operation of the relevant financial provisions (other than section 470B ofthe Taxes Consolidation Act 1997), the aim of maintaining the sustainability of the health insurance market and the aim ofhavingfair and open competition in the health insurance market, and", and (iv) if the amounts referred to in subparagraph (iii) were given effect by a statutory proviskm, the amount of the stamp duty that the Authority considers, after having regard to the aim of avoiding the Fund sustaining surpluses or deficits from year to year (as calculated using approved accounting standards ) and would need to be paid, pursuantt to section 125A of the Stamp Duties Consolidation Act 1999, by registered undertakings (other than restricted membership undertakings) in respect of the persons insured by 1them in order to meet the cost to the Fund of the total of the amounts referred to in subparagraph (iii).