Seanad debates

Wednesday, 23 October 2013

10:30 am

Photo of Darragh O'BrienDarragh O'Brien (Fianna Fail) | Oireachtas source

Can we have a debate on health insurance and the reduction in tax relief for private health insurance policies? When the Minister introduced this measure in the budget, he used the phrase "gold-plated health insurance policies" and led everyone to believe that the measure would only affect a minority. He suggested it would only affect a minority of gold-plated, high net worth individuals who could afford these exorbitant policies. However, we now know that the Department of Finance has stated that 577,000 private health insurance policies will be affected, with increases in premiums. The insurance industry says the figure for those affected is closer to 1.2 million.

This measure has already come into effect as it was voted on in the Lower House to take immediate effect. Health insurers will now write to all policy holders telling them what the increase will be on their policies. I remind Members on the other side of the House that we have raised this issue over the past two years. In the past two and a half years, more than 300,000 people have given up their private health insurance. This year alone, 110,000 have given up health insurance policies and many of these are young people with young families. This drives the cost of health insurance higher. I would like the Minister for Finance to come to the House to debate this issue so that he can explain to us how he came to believe this measure would only affect gold-plated policies.

Perhaps he was mistaken on the day of the budget. I take it he was mistaken and was misinformed. He obviously acted on information that was incomplete. Otherwise, he would not have stated that the measure would only affect a minority. His Department says the measure will affect 600,000 people. What will happen now is that tens of thousands more of policy holders will give up their private health insurance. Perhaps this is the drive towards universal health care and to getting rid of our two-tier health system. However, what this measure does is put further pressure on a health system that is completely broken. I do not understand how the Minister could implement this on the basis of the information he had. Therefore, I request the Leader to arrange a debate on the issue in the next couple of weeks.

I remind the House that yesterday almost 10,000 people demonstrated outside Leinster House. It was interesting to listen to these people, mainly old age pensioners and senior citizens, speak about the cuts made in the budget and the attacks made on them in the past two and a half years. I looked back over the record to see what happened in 2008 when a similar protest against a Fianna Fáil measure - which was wrong - was held. I found it really interesting that in 2008 the current Taoiseach said he rejected the then Government's proposal to remove the right of people over 70 to a medical card. He said: "The cheek of them, shame on them". The current Tánaiste, Deputy Gilmore, said those people had worked hard all their lives and paid high taxes and only wanted the peace of mind of having a medical card if unwell. This is what the two heroes said in 2008. However, they were not outside yesterday. They did not even go out and meet the protesters or discuss the issues with them. No wonder there is such cynicism in politics.

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