FG says public feel need for insurance due to health service

A lack of belief in the health services had led more than half the Republic's population to subscribe to voluntary insurance, Fine Gael health spokesman Dr James Reilly claimed.

He said some 52 per cent of the population had private health insurance, which was extraordinary in a country that was supposed to have free hospital care.

"Why do people feel it is necessary? The answer is obvious, is it not, that they have lost faith in the public hospital service. They have lost faith in their ability to access it. They believe that by having insurance they will be able to get timely efficient proper healthcare.

"They are concerned about Susie Long's seven-month wait and the wait of two years for a mammogram. During the week, a lady in Cork got an appointment for 2010. Running our public health service in that manner is leading to people paying for insurance." Speaking during the resumed debate on the Voluntary Health Insurance (Amendment) Bill, Dr Reilly said there was a new phenomenon whereby some people with medical cards also had private health insurance, because a family would club together to ensure that their grandparents or parents had access to speedy care. "That is clearly bizarre and not right."

Sinn Fein's Dáil leader Caoimhghín Ó Caoláin said the purpose of the Bill, which was essentially technical, was to oblige the board of the VHI to attain the level of reserves needed to achieve authorisation as an insurer. The Bill's content would not change those essential features of the VHI. But it did nothing to remove the doubts about the VHI's future as a statutory corporation, for which the Government had a clear and special responsibility.

"The Government has not made its position clear. Everyone in this House is aware of the penchant of this Government, especially the Minister for Health and Children, for the privatisation agenda, which may well give us reasons to be concerned."

Minister of State for Health Máire Hoctor said the Government was committed to encouraging greater competition in the market and the Bill would help achieve that objective.

"Many of the recent reports on the market have highlighted the need to address the VHI's legislative provisions. The position of VHI must be regularised and this Bill provides for this at the earliest opportunity." Ms Hoctor said it was important to bear in mind the relative risk profiles of the insurers when commenting on the proportion of the market held by VHI.