Dáil Éireann Debate, Thursday - 26 September 2013
262. Deputy Bernard J. Durkan asked the Minister for Health the extent to which private health insurance costs continue to be affected by the charges in both the public and the private hospitals; the extent if any to which increases in private health insurance have resulted in increased charges for various services/procedures throughout the health system; and if he will make a statement on the matter. [40297/13]
View answerThe data available on the private health insurance market in recent years shows a number of factors which are affecting private health insurance costs. The reduction in the numbers holding private health insurance, the age profile of those holding private health insurance, increases in claims costs, increases in premiums, and the overall state of the economy are all having an impact on the private health insurance market and its sustainability.
I am determined to address rising costs in the sector in the interests of consumers. I want insurers to address the base cost of each element of claims which they pay and have made it clear to private health insurers that I believe significant savings can be made, ultimately reducing the impact of rising health costs on health insurance premiums for the consumer.
While pricing decisions in relation to products are a matter for the private health insurers, I understand that key factors influencing price increases generally include the increasing volume and cost of claims and an ageing membership, in addition to ongoing medical innovations, which while welcome, have an impact on the cost of care. A significant number of the private health insurance claims are for procedures which are performed in private facilities, and the negotiated price for procedures in private hospitals is a "package" price, which may include the cost of surgery, drugs, pathology, and accommodation.
Last year I established the Consultative Forum on Health Insurance, comprising representatives from the private health insurance companies, my Department, and the Health Insurance Authority, to generate ideas to address health insurance costs. I appointed an independent Chairperson Mr. Pat McLoughlin, who will work with my Department and the insurers under the auspices of the Forum on a review process to give effect to real cost reductions in the private health insurance market. I want all insurers to address the base cost of their claims and to see all procedures provided in an appropriate, safe, healthcare setting.
It is imperative that the cost of health insurance is contained to secure the sustainability of the private health insurance market and to prepare for the move to a system of Universal Health Insurance.
