Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

In these recessionary times it is true that people of all demographics are opting to leave their current private health plan or not sign up to one at all. The private health insurance market peaked in 2008, along with many other things in this society, when approximately 2.3 million people signed up to private plans. That number has declined ever since and at the moment there are 2.1 million people with private health insurance, which is approximately 45.8% of the population. These numbers are indicative of the tough times we are in but I would also venture to say that everything peaked in 2008 and what goes up must come down, unfortunately and we will seek to have a rebalancing of this in time.

The media has a large part to play in terms of the apocalyptic headlines gracing the newspapers on a weekly basis on this issue. I would argue that the media has a large part to play on many issues but that is for another day.

By all accounts, private health insurers are attempting to keep costs down as it would do them no service to raise costs and lose customers. That would be the easiest avenue to bankruptcy. Rising costs can largely be attributed to what hospitals and consultants are demanding from private insurers. I propose that the Minister, Deputy Reilly, should commission a small team of health insurance experts to conduct an investigation - lasting six month or so - into the rising health costs in Ireland. It should be at minimum expense to the Exchequer and for the betterment of the industry as a whole. There is more to this issue that must be examined more thoroughly.

The Opposition has raised some points about which most of us in the House can agree. I wholeheartedly agree that the best and most equitable health care should be provided for every individual in the State. The Labour Party advocated a Nordic model of health care prior to the 2011 election and there is commonality with the coalition partners, who have agreed to this approach and decided to pursue this aspiration, which unfortunately can only be achieved in more prosperous times. We are trying to set the bedrock in place to achieve this aspiration. Many of us social democrats have examined the Scandinavian model and seen it as something to which we aspire. It can be achieved but the Government must be serious about it and give a long-term commitment. With the current Government and those who have seen the light in the party that was part of the previous Government, we will get there in the end.

I have spoken in the House many times in the past two years about hardships, such as mortgage distress and unemployment, which affect the nation. Families across Ireland must cope with many tough decisions and cutbacks, including cuts to private health insurance. There is an old saying that health is wealth and health care is a crucial pillar in the country's architecture. Grouping private health insurance with a better service in the public system is a main priority for the Government.

I will continue to work as a backbencher to ensure that the best service can be provided and afforded by people. Health is wealth but the costs are a key component. It has been indicated that some people have received over €500,000 and €1 million in payments from private health insurance. A public bed can cost €75 per night but a private bed can cost up to €1,000 per night. Some 56% of the market is held by VHI but 80% of costs go to the company because the majority of older and sicker customers use it. There must be some kind of equalisation. The path to a universal health care system must be pursued on an equitable basis over a number of years for the betterment of all society.

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