James Reilly (Dublin North, Fine Gael) | Oireachtas source

I have consistently raised the issue of costs with health insurers and am determined to address costs in the sector in the interests of consumers. Last year I established the consultative forum on health insurance, which comprises representatives from the country's main health insurance companies, the Health Insurance Authority, HIA, and my Department. This forum was established to generate ideas that would help address health insurance costs, while always respecting the requirements of competition law. I have made it clear to the health insurers that I believe significant savings could be made which could contain the cost of health insurance premiums.

Given VHI’s very significant share of overall costs in the market, I will continue to focus strongly on the need for VHI to address its costs. At my instruction, VHI recently compiled a detailed cost containment plan, which sets out savings targets for 2013 and for the 2014-2016 period so as to minimise the need for any future premium increases. The savings targets over this period are to be achieved through a combination of initiatives, including rate reductions with private hospitals and consultants, utilisation management, expansion of clinical audit, reductions in high-cost drugs and prostheses, provider reviews and the continued transition of procedures to lower-cost and medically appropriate settings. I will continue to focus strongly on this issue as one of the measures to ensure the sustainability of the private health insurance market in the transition to a universal health insurance system.

The continued participation of younger customers is important in keeping the health insurance market on a sustainable path. In addition to the work of the forum, a subgroup of the consultative forum was established earlier this year to consider regulatory issues relevant to the health insurance market, including measures and proposals to encourage greater participation of younger, healthier people in the market. The forum and the subgroup provide a useful platform for continued engagement with the commercial insurers. It is envisaged that further work will be undertaken over the coming months, which will include consideration of any measures necessary to assist the maintenance of an appropriate age balance within the health insurance market.

See this speech in context