Dara Calleary
Question:226. Deputy Dara Calleary asked the Minister for Health the steps he is taking to curtail the spiralling private health insurance cost increases; and if he will make a statement on the matter. [5011/13]
View answerThursday, 31 January 2013
Questions (226)
Written answers
On 28th January I met with the top management of the VHI. They informed me of their intention to increase premiums by 8%. I told them in the strongest possible terms that this was not acceptable to me. They have since announced that the premium increase will now be 6%. I remain very concerned about the cost of health insurance. The Government is committed to keeping down the cost of health insurance so that it is affordable for as many people as possible. It remains committed to protecting community rating, whereby everyone pays the same price for the same health insurance product, irrespective of age or health status.
I have repeatedly raised the issue of costs with health insurers as a whole and am determined to address costs in the sector in the interests of consumers. Last 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.
Given VHI’s very significant share of overall costs in the market, I will continue to focus strongly on the need for the VHI to address its costs and to address aggressively the base cost of procedures, including professional fees. Specific areas which I have requested to be addressed include:
- Audit - of the volume of procedures;
- Clinical audit – to determine the appropriateness of procedures being claimed for;
- Procedure based payments – in particular with a view to their extension to the public health sector;
- Benchmarking – to determine the underlying basis for the cost of specific procedures, with a view to driving costs downwards.
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. The Health Insurance (Amendment) Act, 2012 gave effect to a new Risk Equalisation Scheme (RES) with effect from 1 January 2013. This will contribute to the protection of affordability for those who need it most. It is important to note that the measures contained in the new Risk Equalisation Scheme are designed to result in no overall increase of premiums paid in the market, rather it is intended to spread the risk more evenly between the healthy and the less healthy, as well as the old and the young.
Finally, many consumers can make large savings on their health insurance premiums. I would strongly advise consumers to shop around for the health insurance plan that best suits their needs. For those who have been insured on the same plan for a number of years, it is important to review the level of cover to ensure that their needs are being met, without being over-insured. Consumers have a legal right to switch between or within insurers to get better value and to reduce their premium costs. The Health Insurance Authority (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.