Written answers

Wednesday, 20 March 2013

Department of Health

Health Care Inflation

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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To ask the Minister for Health his views on inflation in healthcare prices here and across the European Union; if he will update Dáil Éireann on any relevant EU discussions in which his Department is engaged; if he will compare Irish healthcare inflation trends since 2005 with Dutch healthcare inflation trends; if he will identify sources for relevant statistical data; if his Department has conducted any relevant statistical analysis since 2010; and if he will make a statement on the matter. [14216/13]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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The principal source of statistical data on health care inflation across the European Union (EU) is the Harmonised Index of Consumer Prices (HICP). This measures the average level of prices paid for consumer goods and services by all private households in a country. The index can be subdivided depending on types of consumption. The health category includes prices of medical products, appliances and equipment, hospital and outpatient costs, and services supplied by doctors, dentists, opticians etc. and other health care practitioners including alternative medicine.

Over the period from the year 2005 to January 2013, Ireland records the third highest rate of inflation in the EU 15 and the twelfth highest rate in the EU 27 in the health category of the HICP. By comparison, the Netherlands had the highest rate of inflation of the EU 15 countries over the period, and ranked seventh highest in the EU 27.

The most recent year of available data for Ireland shows a marked change in these rankings. For the period February 2012 to January 2013, Ireland recorded the sixth lowest inflation rate in the EU 15 and the ninth lowest in the EU 27. For the same period, the Netherlands, by comparison, showed the second highest rate of inflation for both the EU 15 and the EU 27 countries. It should be noted that the health category of the HICP refers specifically to prices paid by consumers of health care products and services. It does not measure the cost to the Health Service Executive (HSE) in providing treatment and as such does not reflect changes in the cost of inter alia human resources, medications and professional fees.

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