PP10/11 HOUSE OF KEYS COMMITTEE ON THE HEALTH INSURANCE (LEVY AND POLICY) BILL REPORT
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1 PP10/11 HOUSE OF KEYS COMMITTEE ON THE HEALTH INSURANCE (LEVY AND POLICY) BILL REPORT
2 REPORT OF THE HOUSE OF KEYS COMMITTEE ON THE HEALTH INSURANCE (LEVY AND POLICY) BILL Resolved on 22 nd June 2010: That the Health Insurance (Levy and Policy) Bill be referred to a committee of three Members with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876, as amended, to consider and report. The powers, privileges and immunities relating to the work of a committee of the House of Keys are those conferred by sections 3 and 4 of the Tynwald Proceedings Act 1876, sections 1 to 4 of the Privileges of Tynwald (Publications) Act 1973 and sections 2 to 4 of the Tynwald Proceedings Act Committee Membership Mr P Karran MHK (Onchan) (Caairliagh) Hon D M Anderson MHK (Glenfaba) Mr J P Watterson MHK (Rushen) Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas IM1 3PW (Tel , Fax ) or may be consulted at All correspondence with regard to this Report should be addressed to the Secretary of the House of Keys, Legislative Buildings, Finch Road, Douglas IM1 3PW.
3 TO: The Honourable Stephen C Rodan SHK and the Honourable Members of the House of Keys REPORT OF THE HOUSE OF KEYS COMMITTEE ON THE HEALTH INSURANCE (LEVY AND POLICY) BILL The Health Insurance (Levy and Policy) Bill (Appendix 1) is a Private Member s Bill, introduced by Mr Peter Karran MHK. The House gave leave to introduce the Bill on 2 nd February It received its First Reading on 23 rd March 2010 and its Second Reading in the House on 25 th May Before consideration of clauses on 22 nd June 2010, the Bill was referred to a Committee of three members for consideration and report. 2. Mr Karran, Mr Anderson and Mr Watterson were elected to the Committee. 3. The Committee met on 14 th July 2010 and elected Mr Karran Chairman of the Committee. The Committee agreed that the following people/organizations would be asked for written evidence: The Chief Minister, on the reasons for his concerns about the proposals in the Bill and why a Committee, in his view, was needed; The Treasury, for its views on the amendments proposed by Mr Watterson; The Chief Executive of the Department of Health, on the Department s views on the Bill and in particular what problems they saw with its provisions; The Isle of Man Insurers Association and Jardine Lloyd Thompson Group plc on their views on the Bill. 1
4 4. The Committee agreed to meet for a second time on 5 th August 2010, once it had had responses to its letters. The responses to the letters which were received (Chief Minister; Chief Financial Officer; and the Director of Health Strategy and Performance, on behalf of the Chief Executive, Department of Health) are appended to this Report without comment (Appendices 2 to 4). The meeting of 5 th August 2010 and further work by the Committee was postponed in the light of continuing promising negotiations with the United Kingdom Government about a possible new agreement. 5. On 1 st April 2010 the United Kingdom Government had indicated that it would put in place a temporary agreement to cover Isle of Man residents and UK residents travelling between the islands on a reciprocal basis without any money changing hands. This was subject to later endorsement in a permanent agreement to be arranged. 6. On 9 th September 2010 the Minister, Mr Anderson, signed the Reciprocal Health Agreement between the United Kingdom and the Isle of Man which came into force on 1 st October 2010, following the expiry of the temporary Agreement which had been in force since 1 st April The Agreement was signed for the United Kingdom Government by Anne Milton MP, Parliamentary Under Secretary of State (Public Health) at the UK Department of Health. 8. The main points of Agreement, which are the same as the preceding temporary agreement, are: (1) Manx residents visiting the UK will receive free NHS treatment if they become ill whilst in the UK, apart from statutory charges which UK residents have to pay, such as prescription charges. (2) UK residents visiting the Isle of Man will receive free NHS treatment if they become ill whilst in the Isle of Man, apart from statutory charges which Isle of Man residents have to pay, such as prescription charges. 2
5 (3) No payments for such treatment will be made to the Isle of Man by the UK, nor by the UK to the Isle of Man. (4) The treatment of Manx residents referred to the UK by the Isle of Man will continue to be paid for by the Isle of Man Health Service. (5) Each party to the Agreement can, if necessary, give 12 months notice of termination of the Agreement. (6) Residents of the United Kingdom and the Isle of Man will still be responsible for their repatriation costs, as before. 9. This agreement brings to an end any uncertainty over long-term health care arrangements with the UK. There is now a permanent Agreement in place and Isle of man residents can travel to the UK, and UK visitors to the Isle of Man, on the basis that free healthcare will be there if it is needed. 10. We note the assurance given by Mr Anderson, as Minister of Health, that the agreement s 12 months notice period provides adequate time for any alternative plan to be implemented in the unlikely event that the current agreement is terminated. In Mr Karran s view the 12 month notice period is insufficient to provide adequate time for preparation of a new alternative system for providing health cover for those visiting the United Kingdom from the Isle of Man. In his view, which the two other members of the Committee do not share, the Department of Health must prepare enabling legislation at the earliest opportunity in the session after the General Election to allow for the speedy introduction of an alternative scheme. 3
6 Recommendation 11. Since the purpose of the Bill was to replace arrangements for healthcare that are now covered by the new agreement, we recommend that the duty of the Committee to report on the Bill be discharged and that the Bill lie on the Table until the end of the Session. P Karran (Caairliagh) D M Anderson J P Watterson 19 th April
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