Oireachtas Joint and Select Committees

Thursday, 22 January 2015

Joint Oireachtas Committee on Health and Children

Medical Indemnity Insurance Costs: Discussion

9:30 am

Photo of Colm BurkeColm Burke (Fine Gael) | Oireachtas source

I thank the witnesses for attending and providing such comprehensive submissions. I disclose that I am a solicitor and I hope they will not hold that against me when replying to my questions.

The witnesses have stated that at the end of 2014 there were 2,840 claims with the State Claims Agency at an estimated cost of €1.159 billion. Over what period is that likely to be paid out? Is it a short period or would it be over the next five years? Will the witnesses outline the amount per annum the State Claims Agency expects to pay out over the next five years?

At the moment in obstetrics and orthopaedics the first €590,000 is covered by the private indemnifiers and in all other categories I believe €1.18 million is covered by the private indemnifiers. If that capping level were reduced, for example from €500,000 to €250,000 and from €1.18 million to €500,000, what would be the additional cost to the State per annum? Have the witnesses calculated the effect of reducing the capping levels? That is one of the issues that need to be dealt with.

Has the State Claims Agency considered the possibility of taking over the management of all personal injury claims, both public and private? What additional cost would this be to the State? Obviously people in private practice would still have to pay premiums to the State Claims Agency at that stage. Would the State Claims Agency have the capacity to take on such a role at this stage?

My next question is directed to the Medical Protection Society. According to the submissions from the Irish Hospital Consultants Association and from the Medical Protection Society, premiums have risen by up to 68% in the past two years. In some cases the insurance premium for a private practice is now in excess of €104,000 per annum. Are similar increases likely over the next two years? If that happens, will the Medical Protection Society remain in the Irish market? Previously the Medical Defence Union pulled out of the Irish market. Does the Medical Protection Society envisage being in the Irish market in five years time? The Medical Protection Society witnesses have made a very strong case about the level of claims increasing. If there is no change, do they envisage the Medical Protection Society being in the Irish market in five years time?

I wish to follow up on a point Deputy Kelleher made. The Medical Protection Society is involved in a large number of jurisdictions around the world. If Mr. Kayll became Minister for Health in the morning, what jurisdiction does he believe would be most appropriate for us to follow in order to have fairness for the patient and at the same time have a system in place that deals with all of the issues mentioned this morning?

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