John Perry (Sligo-Leitrim, Fine Gael)
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Question 90: To ask the Minister for Health and Children her views on whether Government policy on the cost of private beds in public hospitals and her co-location plan will have a significant impact on the cost increase of health insurance premiums; and if she will make a statement on the matter. [12023/07]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 96: To ask the Minister for Health and Children if she has conducted an analysis on the expected cost increase in insurance premiums as a result of her co-location plan; and if she will make a statement on the matter. [12021/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 90 and 96 together.

In July 2005, I announced an initiative designed to provide up to 1,000 additional beds for public patients. This is to be achieved through the development of private hospitals on the sites of public hospitals, transferring private activity to those hospitals and freeing up beds currently reserved for private patients.

As the charges levied on private health insurers for treating private patients in public hospitals are subsidised, the transfer of 1,000 beds will impact on private health insurance costs as private hospitals will have to charge the full economic rate, including the need for return on their capital investment. However, it is in any case, long standing Government policy that the full economic rate should be charged for private beds in public hospitals.

There are other cost drivers associated with increases in premiums apart from the cost of the bed. These include the costs associated with an ageing population, increasing drugs costs and accelerated technology innovation.

However, I do not believe that, in the context of approximately €1 billion in health insurance premia now being paid in Ireland, the additional cost, over some years, of fully charged beds in public or private hospitals, or in co-located facilities, will provide an insuperable challenge to the private health insurance market or will make insurance unaffordable.