Written answers

Thursday, 18 May 2017

Department of Health

Health Insurance Prices

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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210. To ask the Minister for Health his views on an organisation's (details supplied) statement that the public hospital charges for private patients is adding in a significant way to health insurance premium costs; the amount per annum which has been collected by the charge since its introduction; the amount collected to date in 2017; if his Department has carried out an assessment of the link between these charges and premium increases; and if he will make a statement on the matter. [23703/17]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I am aware that some organisations have attributed recent rises in health insurance premiums to increasing claims cost, arising primarily from the introduction of the Health (Amendment) Act 2013. However, it is important to clarify that the cost of private health insurance is influenced by a number of factors, for example the number of persons in the market, the age profile of those holding private health insurance and ongoing medical innovations. Each of these are contributors to the cost of care, the cost of claims and therefore the cost of premiums payable.

It is also important to re-state the policy rationale for the introduction of the Health (Amendment) Act 2013. Although a proportion of activity in public hospitals involves the provision of care to private patients, the core purpose of the system is to provide services for public patients. Government policy is to ensure that there is equitable access for public patients, that the proportion of private activity is appropriately controlled and that the costs of provision of services to private patients are appropriately recouped by public hospitals. All patients who opt to be treated privately in a public hospital are subject to charges, as provided for by the Health (Amendment) Act 2013. This Act addressed a situation identified by the Comptroller and Auditor General in his 2008 report whereby when a private inpatient was accommodated in a public or non-designated bed, no private inpatient charge applied. The additional income generated as a result of the enactment of the 2013 legislation is a key element of the funding to the public hospital system and any curtailment of this funding stream would put further pressure on the Exchequer and the taxpayer in order to maintain service levels.

While my Department has not carried out a specific assessment of the link between these charges and premium increases, it is conducting an analysis of trends in private activity in public hospitals since the Health (Amendment) Act 2013 commenced. It is expected that this report will be completed before the end of May. In relation to the particular queries raised regarding charges collected, as this is a service matter, I have asked the HSE to respond to you directly on this matter.

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