Michael Kitt (Galway East, Fianna Fail) | Oireachtas source

I commend Deputy Kelleher for putting down this motion. Every Member of this House is concerned at the increasing costs involved in health care, particularly with health insurance companies increasing their premiums. There is a real concern that 200 people per day are giving up their health insurance. That demonstrates the crisis of affordability for individuals and families. The health insurance companies are increasing their rates and blaming inflation but in fact these premiums are ahead of inflation generally and ahead of health sector inflation.

Like the Minister, I am concerned that 6,000 consumers are leaving the private health insurance market every month. There is little incentive for younger people to take out health insurance. This threatens the sustainability of private health insurance for those who remain within the system. Many people have downgraded their cover and there is concern 300,000 holders of lower level plans will face a substantial rise in the health levy. It is unfair that someone paying €500 for a lower level plan will pay the same levy as someone who can pay €4,000 for a higher level of cover. There is no level playing field and that is a matter of concern surrounding the introduction of this levy.

The Minister should consider removing the levy from children. Families have enough problems with school fees and paying for college education. These health premiums will be an extra cost. The percentage of the population with inpatient health insurance stands at 45.8% according to the CSO population figures for April 2012, a fall from the peak in 2008 of 50.9%. That is a matter of concern. Among the under 50s, there was a fall of 122,000. We must be concerned about that and consider ways to encourage younger customers into the health insurance market instead of putting obstacles in their way. Last year, the Irish League of Credit Unions found nearly one in ten adults with health insurance would abandon the policy because they could no longer afford it, with 31% claiming they would do that if prices increased again. An article by Charlie Weston in the Irish Independent in December outlined increases of almost 50% under a scheme the Minister is devising. If these health insurance experts say the Minister's plans will lead to a higher premium payment for families, we should take note of that and deal with the increases in premiums.

Public hospitals are charging about €1,000 per night instead of €75 for these beds. The impact will be significant and we should ask why there is never a breakdown of that €1,000 figure. These changes will have an impact because health insurers are not allowed to negotiate prices charged by public hospitals, in contrast to private hospitals, where the insurers can demand terms. There is a reluctance on the part of the health insurance companies to get involved in cover for the newer private hospitals.

I hope the reports of health insurance companies charging punitive fees for people who want to cancel a policy will be dealt with. One family I know was quoted a cancellation fee of €700. It is difficult to shop around in that situation. The CEO of VHI said people could choose wisely and save money if they shop around but it is not that simple when such punitive charges are in place.

The cost of health insurance has doubled in four years at a time when general inflation was low. Last year the inflation in health insurance was ten times the inflation rate in the health sector generally. I call on the Minister to act speedily to reduce the costs in the delivery of both public and private health care.

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