Health: Health Insurance Premiums 20th March 2013

20th March 2013 - Bernard Durkan TD

QUESTION NO: 160

DÁIL QUESTION addressed to the Minister for Health (Dr. James Reilly)

by Deputy Bernard J. Durkan

for ORAL ANSWER on 20/03/2013

To ask the Minister for Health the extent, if any, to which health insurance premiums charged by the VHI or other private health insurers are affected by the fees charged for various procedures in both the public and private hospital sectors; if any study has been down in each case to ascertain whether either sector by virtue of the cost of procedures or actual hospital accommodation contribute to a greater or lesser degree to increase in health insurance premiums in each of the past five years to date; and if he will make a statement on the matter.

Bernard J. Durkan T.D.

REPLY.

As the Deputy is aware, pricing decisions in relation to private health insurance products are a matter for individual insurers. However, I have consistently urged the VHI and all the private health insurers to do everything possible to keep down the cost of private health insurance and I am determined to address costs in this sector in the interest of consumers.

Given the 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 the base cost of procedures, including professional fees. Specifically, I have asked the VHI to focus on increasing the extent of procedure based payments, in addition to benchmarking to determine the underlying basis for the cost of specific procedures.

VHI note that the key factors influencing price increases generally include the increasing volume and cost of claims, an ageing membership, and ongoing medical innovations, which while welcome, have an impact on the cost of care. According to the VHI, approximately 70% of VHI Healthcare’s claims are performed in private facilities, and the negotiated price for procedures in private hospitals is a “package” price, which includes the cost of surgery, drugs, pathology, and accommodation.

In terms of increased premiums which may arise from cost of procedures or hospital accommodation, it is a matter for each insurer to contain its own costs and to compete actively on the basis of price.

Bernard Durkan TD

Kildare North

Bernard J Durkan is the Fine Gael spokesperson on Public Expenditure, NDP Delivery and Reform. Originally from Killasser, Co Mayo,…

Health: Health Insurance Premiums 20th March 2013

Bernard Durkan TD

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