Oireachtas Joint and Select Committees

Thursday, 25 October 2012

Joint Oireachtas Committee on Health and Children

Health Insurance Sector: Discussion

12:05 pm

Photo of Ciara ConwayCiara Conway (Waterford, Labour) | Oireachtas source

I thank the delegations for their contributions. I know that many members of the delegation were in the Visitors Gallery when I first spoke about the figures with which this committee, the Committee of Public Accounts and I have been furnished by the HSE. We seem to be at a crossroads and have been told by the VHI, Aviva Health Insurance and Laya Healthcare that there is no problem with payout. I will read out the information we have. We must address this issue because it is a substantial one for the public purse.

At the end of September 2012, €204 million was due to the HSE from private health insurance in respect of treatment provided to private patients. Of the €204 million, €100 million relates to claims under preparation in hospitals. This issue has been raised with consultants in terms of their failure to complete paperwork for whatever reason. This is one of the areas in the ongoing Labour Relations Commission hearings where it has been outlined that consultants need to pull up their socks. A total of €104 million is outstanding relating to claims submitted to insurers which are either pending or being processed and this is the crux of the matter. We have heard from the VHI that there is a 48 hour turnaround. We have not heard from GloHealth in respect of the payouts there. Laya Healthcare has told us that it has made the difference - and this is something of which I have experience - in terms of private hospitals being able to do their business much more efficiently in getting the bills out in the 30 day period versus a 90 day period. We need further clarification on that because €104 million is swishing around somewhere in the system and we would like to know where it is.

The HSE also told me that it has awarded a contract to roll out an electronic claims management in 11 HSE sites to replace the current paper-based system. This is very timely. The new system is currently operational in six sites and is expected to be operational in a further three by mid-November. From the delegation's dealings with the six sites that are operating the electronic method of payment, is it increasing efficiency and are we bringing down that 90 day period to a much more manageable timeframe?

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