Sir, – Laya Healthcare has just announced up to a 19 per cent reduction in health premiums for some plans and fixed its prices over two years. While this will be welcomed by consumer groups, it should not be a surprise. Laya recently cut reimbursements to doctors by 5 per cent across the board and in many instances by much greater amounts. Since 2008 health insurers have cut fees to consultants by 20 per cent or more, reducing them to the levels of over 10 years ago. During this time consultants costs have skyrocketed – the costs of any small business such as staff, utilities, and consumables. Most notable of these is the cost of medical indemnity insurance which the Medical Protection Society has increased by nearly 100 per cent in the past two years. This, it says, is due to the high incidence of litigation in Irish society and the sums being paid out in settlements. This increase in indemnity premiums is on the back of serial increases over several years. Some doctors are now paying over 40 per cent of their income in medical indemnity. This is unsustainable for any business.
The only solution for many doctors will be to increase consultation fees or to opt out of the full participation schemes that the majority of hospital consultants are currently signed up for with the healthcare insurers. While this is unlikely to improve their public image, for many it is the only pathway to survival. This will more than undo any consumer benefit that may accrue from these recent cuts in health insurance premiums. The young Irish medical graduates are looking at this and opting out at source. Not only are they leaving in droves, it looks like they are not coming back any time soon. – Yours, etc,
GREG FULTON,
Douglas,
Cork.