Vol. 383 No. 6
asked the Minister for Health if the annual report of the Voluntary Health Insurance for the year ended February, 1988 shows an underwriting loss of approximately £15 million; if not, the underwriting loss for that year; the reason he has delayed placing the annual report of the VHI for that year before Dáil Éireann; and if he will make a statement on the matter.
45.
asked the Minister for Health if he has received a request for an increase in fees charged by the Voluntary Health Insurance; if he has agreed to any such request; if he has investigated the extent to which the VHI's decision to offer cover for luxury private hospitals has contributed to their current financial difficulties; and if he will make a statement on the matter.
58.
asked the Minister for Health if he will ensure in all future annual accounts of the Voluntary Health Insurance that individual plans will be shown for each premium plan giving figures of income and outgoings in order to assess the question of any cross-subsidisation between plans.
74.
asked the Minister for Health if he will outline the current financial position of the VHI; whether an application for an increase in premia has been received by him from the VHI; his intentions in this regard; and when he envisages that he will receive the report of the study commissioned by him into the operations of the VHI.
I propose to take Questions Nos. 30, 45, 58 and 74 together.
The VHI final annual accounts for the year ended 29 February, 1988 have recently become available to me and will be presented to the Dáil shortly.
As announced by me in the House on Friday last, the VHI board have appointed Mr. Noel Fox as a recovery manager to produce and implement a viable recovery and strategic plan for the next five years. I welcome this initiative by the VHI Board. As also announced in the House on Friday, I have appointed Mr. Fox to be a member of the VHI Board.
I do not wish to comment further on VHI finances at this time. I am not in a position yet to say what particular measures will be required to improve the VHI's financial position. However, I should like to reassure the House and the general public that I have no reason to think that the VHI will not continue as a viable and important part of the health service structure in the future.
Would the Minister confirm that he received — during the summer — an application from the VHI Board to increase premia on plans A, B and C by 8 per cent and on plans D and E by 15 per cent?
I received an application from the VHI for increases to be effective from 1 December; that is the usual date. As the House will be aware, I requested a firm of consultants to examine the VHI Board as far back as July last, to examine their present position and particularly to examine the implications of 1992 on the VHI. Because I expected the first part of that report in October a decision was not taken on the board's application at that time. I expect now that the recovery manager will submit an amended plan of that submitted by the VHI Board, which will be examined without delay, when we shall take whatever action we deem appropriate.
Would the Minister confirm that for the year ending 29 February 1988 the VHI suffered a net loss of £10 million, that is an operating loss of £17 million offset by £7 million of investment profits? Would the Minister agree that the future viability of the VHI is now in doubt, that the VHI have indicated to him that, unless they get sanction for increases in premia of the Order I have indicated, they will be unable to continue to operate?
It is important that I reply to the allegation by Deputy Howlin that the viability of the VHI is in doubt. I should say that the viability of the VHI is in absolutely no doubt. As I have said, a firm of consultants were appointed in July last. Appropriate action is being taken. I accept that there were losses incurred. Their annual accounts will be submitted to the Dáil in the near future. I accept that there were underwriting losses but those were met from reserves and return on investments. Therefore there is no serious problem vis-à-vis the VHI. Everything is in hand. The VHI will continue to provide an excellent and valuable service to those people who wish to avail of it.
