Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

These debating points have been well rehearsed.

We had a lengthy debate on Committee Stage. We are beginning to see the full picture of the health insurance market. Deputy Denis Naughten referred to the increase in premium costs announced by Aviva. The average increase is 5.2%, but the cost of some policies will increase by 11%. We should remember these increases are altogether separate from those resulting from the restriction of tax relief. The increases announced by Aviva and the expected increases to be announced by Laya Healthcare and VHI are consequent to general inflation in medical costs, the issue concerning the charging for public beds in public hospitals, etc. These issues are all having a very serious impact. The Minister for Finance seemed to base his argument on the apparent fact that, despite an increase in the order of over 80% in the cost of premiums in recent years, the number of people relinquishing health insurance policies had only fallen by approximately 7%, which was quite remarkable. The Minister has made the point that the market is very inelastic, but that is because people are fearful. They do not want to let go of their health insurance because of what they hear about the public health system. In some cases, the public health system's bad reputation is unwarranted, but in others the very real stories people have, particularly about waiting for elective procedures in orthopaedics, etc., are justified.

The objective of my amendment is very modest and based on my recognition that the Minister will not change his mind about introducing this restriction of the tax relief. It would require, at least, that the value of the tax relief the Minister proposes to leave in place would not be undermined over time by the time value of money and inflation. In amendment No. 19 we are suggesting the amounts referred to in the tax relief provisions should be increased annually in line with medical inflation, as measured by the CPI and published by the CSO.

It is worth repeating the point I made on Committee Stage, namely, that by restricting tax relief and implementing other health policy initiatives, the Minister's overall goal of having universal health insurance is becoming increasingly distant. More people will end up forfeiting their health insurance because they simply cannot afford to pay for it. The very idea of universal health insurance is that as many people as possible who can afford to pay for health insurance should continue to do so, while the State would pay for the health insurance of everybody else. That model will not work if the number of people paying for health insurance is diminishing all the time. The very policy decisions the Government is taking are accelerating that trend. Young people, including those who are working and have young families, or those we most need in the system to pay for the health insurance needs of others, are the very ones who cannot afford to maintain their cover. That is a fundamental flaw.

I would love to believe the announcement of a free GP card for every person under six years will be honoured shortly, but I very much doubt it. There is no chance of our seeing free GP care for all in the lifetime of the Government. Universal health insurance is becoming increasingly distant as a policy objective. The decision in the Finance Bill is contributing to this.

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