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Health Insurance Prices

Dáil Éireann Debate, Wednesday - 19 December 2012

Wednesday, 19 December 2012

Questions (20, 188)

Micheál Martin

Question:

20. Deputy Micheál Martin asked the Minister for Health his plans to reduce the price of private healthcare; and if he will make a statement on the matter. [57069/12]

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Bernard Durkan

Question:

188. Deputy Bernard J. Durkan asked the Minister for Health the action that has been taken to ensure that health insurance costs here are brought into line with the most competitive in Europe; and if he will make a statement on the matter. [57318/12]

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Written answers

I propose to take Questions Nos. 20 and 188 together.

The Government is committed to keeping down the cost of health insurance so that it is affordable for as many people as possible and remains committed to protecting community rating, whereby everyone pays the same price for the same health insurance product, irrespective of age or health status. The Programme for Government contains a commitment to put a permanent scheme of risk equalisation in place, which is a key requirement for the existing private health insurance market and is designed to keep health insurance affordable for older persons and to maintain the stability of the market.

I was pleased, therefore, to recently publish the Health Insurance (Amendment) Bill, 2012, to give effect to a new Risk Equalisation Scheme (RES) to be applied from 1 January 2013. An effective and robust RES is required in the Irish private health insurance market in order to protect affordability for those who need it most.

I recently announced the rates of risk equalisation credits to apply in 2013 at the Committee Stage debate in the Dáil on this Bill. The rates are funded by a stamp duty payable by all insurers in respect of each insured person. The credit is provided at source – that is, the cost of the policy is reduced by the amount of the risk equalisation credit. The measures are designed to result in no overall increase of premiums paid in the market and to spread the risk more evenly between the healthy and the less healthy, as well as the old and the young. This action is in line with plans to move to Universal Health Insurance, under which everyone will be insured for health care.

The Government remains committed to keeping down both the cost of health insurance, so that it is affordable for as many people as possible, and the general cost of healthcare delivery, as part of measures to ensure the sustainability of the private health insurance market in the transition to a UHI system. In February of this year I established the Health Insurance Consultative Forum which comprises representatives from the country's main health insurance companies, the Health Insurance Authority (HIA) and the Department of Health. This Forum was established to generate ideas which would help address health insurance costs, whilst always respecting the requirements of competition law. The Forum will also give a voice to the insurers in the development of the new Universal Health Insurance model. I have also made it clear to the health insurers that I believe that significant savings can still be made, the effect of which can be to minimise the need for increases in premiums.

In this regard, VHI has commissioned consultants to carry out an external review of their claims. The review is nearing completion and will look at the opportunities and costs involved in possible reductions in utilisation that can be achieved by implementing appropriate utilisation management approaches.

I would also strongly advise consumers to shop around for the health insurance plan that best suits their needs. Consumers have a legal right to switch between or within insurers to get better value and to reduce their premium costs. The HIA provides information to consumers regarding their rights and also on health insurance plans and benefits. The HIA's website www.hia.ie has a useful plan comparison tool which assists in finding suitable and competitive health insurance plans.

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