Written answers

Tuesday, 26 June 2012

9:00 pm

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Question 528: To ask the Minister for Health his views on whether the increasing number of persons opting out of private health insurance will undermine the implementation of universal health insurance in view of the fact that the funding basis for UHI is being reduced by the numbers exiting private health insurance; and if he will make a statement on the matter. [30327/12]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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While there has been a decrease in the numbers with private health insurance, by 76,000 in the year to end-March 2012, it is important to note that the decline in private health insurance coverage is modest to-date, at less than 4% of the overall market. This leaves some 2.139 million, or 46.6% of the population, covered by private health insurance. Even in the current difficult financial climate, the vast majority of consumers holding private health insurance are choosing to retain some level of health insurance cover rather than allowing policies to lapse completely.

Under Universal Health Insurance (UHI), everyone will be insured for health care and the current unfair discrimination between public and private patients will be removed. The Government's clear objective is for the health insurance market to remain as competitive and affordable as possible, as we move towards a new system of UHI. The Government is committed to fundamental reform of healthcare in Ireland that will deliver a single tier health system, where access is based on need, not income. A new Insurance Fund will subsidise or pay insurance premiums for those who qualify for a subsidy. This reform programme is a major undertaking that requires careful sequencing over a number of years, to be supported by a number of key reform initiatives.

The Health Insurance Consultative Forum, which includes representatives from the country's three main health insurance companies, the Health Insurance Authority and the Department of Health, is tasked with examining how costs in the health insurance industry can be reduced. The Forum provides a vehicle for engagement and consideration of issues relating to the implementation of UHI. In addition, in February I established an Implementation Group on UHI which will assist in developing detailed implementation plans for UHI and driving implementation of various elements of the health reform programme. The Group will also assist my Department in preparing a White Paper on Financing Universal Health Insurance. The White Paper will outline the estimated costs and financing mechanisms associated with the introduction of UHI. Preparation of the White Paper is a complex process. It will involve significant financial modelling to support analysis of different design options and to estimate the cost of UHI. The White Paper will be published as early as possible within the Government's term of office.

In the interim, I am focusing on addressing the problems of the current private health insurance market, where insurers have a considerable financial incentive to cover younger, better risks rather than older, poorer risks. I am very concerned that any inefficiency in the management of claims is addressed before the introduction of UHI and am determined that measures currently being undertaken will have a significant impact in containing the cost of health insurance premiums, as we move towards the new system of Universal Health Insurance.

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