Health insurance pay outs to be cut

HEALTH reforms, including a 20% reduction in payments by health insurance companies under the risk equalisation scheme, are being sought by the Government.

The derogation the VHI had from meeting minimum solvency requirements has been brought back from 2012 to 2008 and the Department of Health will appoint legal and corporate advisers to assist the VHI in finding enough reserves to meet the new target.

“The fundamental issue of creating a level playing field in the market is being brought forward to the earliest possible date,” Ms Harney said in a statement.