Bernard Durkan (Kildare North, Fine Gael)
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604. To ask the Minister for Health the extent to which his Department continues to monitor activity in the health insurance area with particular reference to the need to achieve lower premium payments in the current economic environment; the extent to which health insurance costs have been affected by the costs of hospital procedures in the public and private health sectors respectively; and if he will make a statement on the matter. [24400/13]

James Reilly (Dublin North, Fine Gael)
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The main legislative provisions for the regulation of the Irish private health insurance market are included in the Health Insurance Acts 1994 to 2012 and Regulations made under those Acts. Under this legislation, my Department oversees the maintenance of a competitive and sustainable private health insurance market and monitors developments on an ongoing basis, to ensure that the market is regulated appropriately in the transition to a market-based Universal Health Insurance system.

With particular regard to the cost of health insurance premiums, I have consistently raised the issue of costs with health insurers and am determined to address costs in the sector in the interests of consumers. Last year, I established the Consultative Forum on Health Insurance which comprises representatives from the country's main health insurance companies, the Health Insurance Authority (HIA) and my Department. This Forum was established to generate ideas which would help address health insurance costs, whilst always respecting the requirements of competition law. I have made it clear to the health insurers that I believe significant savings can be made, the effect of which can be to contain the cost of health insurance premiums.

Given VHI’s very significant share of overall costs in the market, I will continue to focus strongly on the need for the VHI to address its costs. At my instruction, the VHI recently compiled a detailed cost containment plan, which sets out savings targets for 2013 and for the 2014-2016 period, so as to minimise the need for any future premium increases. The savings targets over this period are to be achieved through a combination of initiatives including rate reductions with private hospitals and consultants, utilisation management, expansion of clinical audit, reductions in high cost drugs and prosthesis, provider reviews and the continued transition of procedures to lower cost, medically appropriate settings.

I will continue to focus strongly on this issue, as part of measures to ensure the sustainability of the private health insurance market in the transition to a Universal Health Insurance system.