Written answers

Thursday, 10 February 2005

Department of Health and Children

Health Insurance

5:00 pm

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 93: To ask the Tánaiste and Minister for Health and Children the total percentage increase in VHI premiums since 1997; if her attention has been drawn to statements made by VHI representatives that the increase in the cost of private beds in public hospitals is likely to lead to a further increase of approximately 5%; if her attention has been further drawn to the severe difficulties now faced by families in meeting VHI bills; and if she will make a statement on the matter. [4210/05]

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
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It is estimated that the total percentage increase in VHI premiums for its core products since 1997 is 96%. Officials in the Department of Health and Children have estimated that the recently announced increase in the cost of private beds in public hospitals will result in an increase in health insurance premiums of approximately 5%.

In the interests of equity, the Government has a policy of gradually eliminating the effective subsidy for private stays in public hospital beds, thereby relieving the taxpayer of the burden of carrying the costs. Even taking the increase into consideration, the cost of providing services to private patients in the major hospitals will continue to exceed the income arising from the charges.

Notwithstanding the increase and the phased implementation of the move towards economic pricing of public pay beds, the cost of community rated private health insurance remains low by international standards and continues to benefit from tax relief at the standard rate. The regulatory framework provides that premiums for children under the age of 18 years will be waived or will not exceed 50% of the adult rate, while premiums for students in full-time education up to the age of 23 years may not exceed 50% of the adult rate.

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