Sir, - Charles Nutty's article Consumer is the loser in new VHI legislation (Business This Week, July 13th), contains two factual inaccuracies on the role of the independent Health Insurance Authority created on February 1st.
Firstly, both the Health Insurance Act, 1994 and the Health Insurance (Amendment) Act, 2001 makes it clear the role of the authority is much wider than risk equalisation, although it is true that this aspect has attracted most press coverage to date.
Mr Nutty need not fear that the interests of consumers are being neglected. Consumer protection is an integral part of the role of the authority and in fact one of the five members of the authority is a nominee of the Office of the Director of Consumer Affairs.
Secondly, any figures give on risk equalisation transfers between private health insurers are purely speculative. The Minister for Health and Children has not signed any order introducing the regulations or bringing the Act into force. He has indicated that he will bring regulations to the Oireachtas in the autumn. Bearing in mind its responsibilities under the Act, the authority will take independent expert advice before and after the introduction of these regulations in order to assist the authority in determining its position concerning any risk equalisation scheme. The authority will reach its own conclusions on whether and when risk equalisation is necessary, and decide the level of any transfers. It will then convey its recommendations to the Minister for Health and Children. It is the Minister who will make any order setting up the risk equalisation fund and initiating transfers to or from that fund. - Yours, etc.,
Dermot Ryan, Chief Executive, Health Insurance Authority, Canal Road, Dublin 6.