As Minister, I have no legal power to intervene in relation to health insurance prices set by the health insurance providers. The insurance companies, operating as commercial providers with a view towards profit generation, make commercial decisions about their prices. However, it is clear that any significant price increases will make it more difficult for customers to renew their policies, therefore I have consistently raised the issue of costs with health insurers and am determined to address costs in the sector in the interests of consumers. Last year, I established the Consultative Forum on Health Insurance which comprises representatives from the country's main health insurance companies, the Health Insurance Authority (HIA) and my Department. This Forum was established to generate ideas which would help address health insurance costs, whilst always respecting the requirements of competition law. I have made it clear to the health insurers that I believe significant savings can be made, the effect of which can be to contain the cost of health insurance 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. At my instruction, the VHI recently compiled a detailed cost containment plan, which sets out savings targets for 2013 and for the 2014-2016 period, so as to minimise the need for any future premium increases. The savings targets over this period are to be achieved through a combination of initiatives including rate reductions with private hospitals and consultants, utilisation management, expansion of clinical audit, reductions in high cost drugs and prosthesis, provider reviews and the continued transition of procedures to lower cost, medically appropriate settings. I will continue to focus strongly on this issue, as part of measures to ensure the sustainability of the private health insurance market in the transition to a Universal Health Insurance system.
In the meantime, many consumers can make large savings on their health insurance premiums by shopping 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.
