Mattie McGrath (Tipperary South, Independent)
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175. To ask the Minister for Health if he will outline the increases in VHI premiums over the past two years and the justifications for same; and if he will make a statement on the matter. [26200/14]

James Reilly (Dublin North, Fine Gael)
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I have no function in the setting of VHI's prices, as it is a commercial company operating in a competitive market and makes its own commercial decisions about prices.

VHI's average price increase for the last two years has been 4.5%. It increased its prices by an average of 3% on March 1, 2014 and an average of 6% on March 1, 2013. VHI has indicated that the price increases were necessary to cover the costs of providing for the healthcare needs of their customers in an aging market and it has continuously sought to keep any price increases as low as possible. It has minimised price increases in the past two years because of the work it has done on cost containment.  This has been achieved through a range of measures, such as targeted claims efficiency programmes, reduced fees to providers, increased activity of the special claims investigation unit and the continued transition of procedures to lower cost medically appropriate settings. It reduced its cost of total gross claims paid in 2013 by 2.1%.

I have consistently urged the VHI and all the private health insurers to do everything possible to keep down the cost of private health insurance. I am determined to address costs in this sector in the interest of consumers and I have made it clear to insurers that I believe significant savings can still be made, the effect of which can be to minimise the need for increases in premiums.

As part of the Consultative Forum on Health Insurance, I appointed Mr. Pat McLoughlin as Independent Chair to work with insurance companies and the Department to identify effective cost management strategies to help ensure the long-term sustainability of the private health insurance market. Mr. McLoughlin’s first report was published on 26 December 2013 and the second phase report is expected to be finalised in the coming weeks.

Many consumers can make large savings on their health insurance premiums by shopping around for the health insurance plan that best suits their needs. For those who have been insured on the same plan for a number of years, it is important to review the level of cover to ensure that their needs are being met, without being over-insured. Consumers have a legal right to switch between or within insurers to get better value and to reduce their premium costs. The Health Insurance Authority (HIA) provides information to consumers regarding their rights and also on health insurance plans and benefits. The HIA's website www.hia.ie has a useful plan comparison tool which assists in finding suitable and competitive health insurance plans.