1.5 million face hike in health insurance

UP to 1.5 million people face a further hike in private health insurance costs on foot of Government plans to increase the cost of a private hospital bed by 25%.

The VHI last night confirmed the additional charge “will inevitably have a knock-on effect on health insurance costs”, but could not say when the hike would take effect. VHI costs have already soared almost 30% since 2002.

Tánaiste and Health Minister Mary Harney yesterday tried to justify the 25% increase, arguing that insurers should be meeting the full cost of private beds, not depending on Government subsidies. She said even with the increase in the charge raised by hospitals from private beds, the Government was still paying one third of the cost.

BUPA said it had no plans to increase its prices and certainly not this year.

Patients who overnight in beds and are not in possession of a medical card also face extra costs. The overnight bed charge has gone up from €45 last year to €55, a €10 increase on top of a €5 increase last year. Ms Harney said the combination of bed charge increases would yield €50 million a year towards hospital budgets.

A&E charges are also being increased by €10, up to €55. Ms Harney said the increase would “facilitate more appropriate attendances at A&E units by reducing an incentive for people to attend A&E when they might appropriately receive services from GPs”.

She has also devised a €70m, 10-point plan to improve A&E services, including the development of minor injury units, chest pain and respiratory clinics and acute medical units at Tallaght, St Vincent’s and Beaumont Hospitals. Beds in these units will be in addition to an extra 300 acute beds the Tánaiste has promised to come on stream next year.

She has also promised to free up hospital beds by transferring 100 high dependency patients to suitable nursing home care, although the Irish Medical Organisation said this could involve doctors seeking additional fees.

The Tánaiste has also pledged to look at greater use of private nursing homes as part of alleviating the A&E crisis. Negotiation with the private sector to meet the needs of 500 people awaiting intermediate care will take place and expanded home care packages devised to support 500 additional older people at home.

The expansion of GP out-of-hours service is also a priority, again to relieve pressure on A&Es, but details of how this will be achieved have yet to be worked out. Patient advocacy group Patients Together said the A&E package had potential, but wouldn’t address immediate problems.

The Irish Hospital Consultant’s Association said it was not happy with an almost €40 million rise in the capital allocation for building, equipping and furnishing hospitals and other health facilities.

Quotes

“This is a shameful day for the country.” - Michael D Higgins TD on learning that Overseas Development Assistance was only 0.5% of GNP.

“How rich do we need to become before we keep our promise to the world’s poorest people?” - Justin Kilcullen of Trócaire.

“Estimates confirm recent fears that the Government was getting cold feet on its commitment to the world’s poor.” - Concern deputy chief executive Paddy Maguinness.

“Today’s published figures tell a sobering tale of Government inefficiency. This is a political, not an economic or social document.” - Labour’s finance spokesperson Joan Burton.

“Estimates were big on talk but low on delivery. Those who hoped that the era of stealth taxes were over will be disappointed.” - Fine Gael finance spokesman Richard Bruton.

“Estimates reveal enormous gaps between what this Government intends to do and the new caring image that they are attempting to cultivate.” - Green spokesman Dan Boyle.

“These estimates, taken in tandem with recent populist statements by the Taoiseach, signal the early start of the Fianna Fáil General Election campaign.” - Sinn Féin’s finance spokesman Caoimhghín Ó Caoláin.

“There are a number of areas of concern hidden in the detail of these Estimates.” - SIPTU economist Manus O’Riordan.

“Re-announcement by Minister McDowell he was given Cabinet approval for the recruitment of an additional 2,000 gardaí is clearly a device to disguise the fact that little or no money has been provided for extra members next year.” - Joe Costello of Labour.

“Mr Costello, as is becoming routine now, has got it wrong. The recruitment programme will commence in two weeks’ time.” - Michael McDowell, accusing Labour of peddling dishonest propaganda.

“Sick are being made to pay again with a new triple-whammy of stealth taxes.” - Labour health spokesperson Liz McManus.

“We are pleased the Government has invested in young people’s involvement in youth work throughout the country.” - National Youth Council of Ireland director Mary Cunningham.

“Stability and low inflation depend on current spending in 2005 being held in line with the output of the economy.” - IBEC’s director of economic affairs Brian Geoghegan.

“Total spend allocated for next year will again fail to meet the Government’s own housing targets or effectively tackle the massive backlog of over 48,000 households on local authority housing waiting lists.” - Focus Ireland’s Declan Jones.