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Health Insurance Prices

Dáil Éireann Debate, Tuesday - 18 February 2014

Tuesday, 18 February 2014

Questions (742)

Patrick O'Donovan

Question:

742. Deputy Patrick O'Donovan asked the Minister for Health his plans to reduce the fees paid or to introduce revised fee structures to consultants operating in public hospitals in an effort to address the growing cost of private health insurance; and if he will make a statement on the matter. [8040/14]

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Written answers

I assume the Deputy is referring to private fees generated by some consultants who, subject to the contract they hold, may engage in privately remunerated professional medical practice in public hospitals up to a maximum of, typically, 20% of the consultant's workload. The level of such fees paid is a commercial decision made by individual health insurers.

I have consistently raised the issue of managing costs with the private health insurers and I have strongly urged them to reduce their overall costs including professional fees. While there has already been some reduction in such professional fees with VHI reporting that it has reduced consultant fees to pre-2004 levels, I will continue to urge all health insurers to achieve further fee and cost reductions in the interests of consumers.

In this regard, I appointed Mr. Pat McLoughlin to work with insurance companies and my Department on an independent review process to identify effective cost management strategies to help ensure the long-term sustainability of the private health insurance market. I am currently examining Phase 1 of Mr. McLoughlin's report, Review of Measures to Reduce Costs in the Private Health Insurance Market 2013, which was published on 26th December 2013. The second phase of Mr. McLoughlin’s review commenced in January 2014 with a view to reporting within three months, and will study further the drivers behind rising costs in the health insurance industry and seek to address them.

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