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Health Insurance Company Payments

Dáil Éireann Debate, Thursday - 27 September 2012

Thursday, 27 September 2012

Ceisteanna (71)

John McGuinness

Ceist:

71. Deputy John McGuinness asked the Minister for Health the progress made to date in collecting moneys owed by insurance companies; and if he will make a statement on the matter. [40979/12]

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Freagraí scríofa

The HSE and Voluntary hospitals recoup a considerable amount of income from private insurance companies in return for private and semi-private treatment services provided to patients with private health insurance cover. Lengthy delays can occur between the discharge of patients and the receipt of payment from the health insurance companies. I have emphasised to the HSE the importance of addressing this problem, in conjunction with the insurers, so that the maximum resources possible are available to the health system.

The HSE has introduced a number of initiatives to improve the claims collection process and facilitate faster submission of claims which will accelerate income collection within the public hospital system. In particular:

- The HSE has instructed hospitals to bring down the value of claims awaiting Consultant action and hospitals will also target the highest-value claims. This issue was addressed in the proposals recently agreed with the IHCA and IMO at the Labour Relations Commission which includes an explicit requirement that consultants complete private insurance claims documentation within 14 days of receipt.

- The HSE has also awarded the contract for the roll-out of an electronic claims management system in eleven HSE sites to replace the current paper based system. Work has already commenced and the system will be operational in four sites by the end of October.

Other issues in relation to private patient income have also been advanced in 2012. From 1 January 2012, the charges for patients who choose to be treated on a private basis in public hospitals increased by between 3% and 5% depending on the category of hospital. The increase in charges is in keeping with the long-standing policy of moving towards recovering the full economic cost of providing treatment to private patients in public hospitals. It is anticipated that the increased charges will yield additional revenue in the region of €18 million in 2012.

The Department has also been working with the main health insurers to agree in principle a system of improved cash-flow and accelerated payment which will provide a once-off cash flow benefit in 2012 in the region of €125m. The details of the accelerated payment arrangements are at an advanced stage and are being finalised with the health insurers at present.

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