The main reforms

Position of VHI

VHI to become a conventional insurer authorised by the Financial Regulator by the end of 2008. The derogation from solvency requirements which the company enjoys will cease when it is authorised.

The Departments of Health and Children and Finance are to report to Government by mid-December on how this is best achieved.

The VHI will be directed to comply with the Financial Regulator's Consumer Protection Code in the same manner as if it were an undertaking already regulated by the Financial Regulator.

Pro-consumer measures

Health insurance customers will be provided with clear statements of consumers' rights and standardised renewal notices;

Companies with payroll deduction schemes will be asked to offer at least two companies' products to their employees.

Risk equalisation and community rating

The three-year exemption from risk equalisation payments for new entrants to be abolished. Risk equalisation payments will be discounted by 20 per cent.

Proposals on loadings for late entrants to be considered by insurers.

The level of health insurance which should be subject to community rating to be reviewed.