Reilly asks VHI to address costs urgently

Minister for Health James Reilly has said he has asked the VHI to address its costs as a matter of urgency.

“In particular, I have asked them to focus on auditing the volumes of procedures that they pay for, and to audit from a clinical perspective the appropriateness of procedures carried out before they fund them,” he added.

“I have also stressed to the VHI that they should critically examine the actual prices they pay, both to health professionals and to private hospitals.”

Dr Reilly said he had emphasised the steps he expected to be taken across the private health insurance industry to keep costs and resulting premiums down.

He said he had established last year the health insurance consultative forum, made up of representatives from the main health insurance companies, the Health Insurance Authority and the Department of Health to address health insurance costs.

The Minister said that just over 2.09 million people had private health insurance, representing 45.8 per cent of the population.

The numbers insured had fallen by 63,700 (2.9 per cent) last year, which was a continuation of the declining trend since the peak of 2.2 million, 50.9 per cent of the population, at the end of 2008.

The Minister was responding to a Fianna Fáil Private Members’ motion calling on the Government to permit public hospitals to negotiate with health insurers and use its position as a VHI shareholder to negotiate a reduction in consultant fees.

Fianna Fáil spokesman on health Billy Kelleher said there had been massive increases in the cost of private health insurance in recent years.

A situation had developed, he said, whereby those who could afford only basic plans subsidised those with “Rolls Royce private health insurance”, which was clearly unjust and unfair.

People were forced to make choices between filling the oil tank, paying the gas bill or paying their insurance, he added.

Sinn Féin spokesman on health Caoimhghín Ó Caoláin said his party advocated universal health care, based on equal access for all.

“We want that to be State-provided, funded from fair general taxation and free at the point of delivery,” he added.

“This would involve a higher contribution in tax from the highest earners than they contribute at present.”