Health care reform which includes risk equalisation only where there is sustained instability in the market could speed up that reform while maintaining a competitive market.
Prof Ray Kinsella, of UCD's Graduate School's Centre for Insurance Studies, says` "One real possibility which could speed a much needed process of health care reform is to include risk equalisation, but only on a reserve basis, in a situation where the proposed regulator could monitor closely a new more dynamic and competitive market."
This would mean the risk equalisation payments from competitor health insurance firms to the VHI would only come into effect in cases where there was sustained instability in the market.
On Tuesday, the centre hosts a national conference which will bring together heads of public and private hospitals, the VHI's chef executive officer, Mr Oliver Tatton, and BUPA Ireland's managing director, Mr Martin O'Rourke.
Prof Kinsella said the conference came at a crucial time with the Government shortly introducing legislation to grant VHI independence and a corporate status.
"Consensus to ensure the stability of Ireland's voluntary PMI market needs to be balanced with the news that risk equalisation deters competition and inhibits the market-building essential for an equitable and sustainable public/ private health care mix."
