Government defends health insurance bill rushed through Dáil in 25 minutes

THE Government yesterday defended its decision to rush regulations through the Dáil even though it may lead to higher insurance premiums.

New regulations on risk equalisation were passed in the Dáil yesterday after only 25 minutes of debate, amid vociferous protests from the opposition, who claimed that major changes in the health insurance market were being forced through with no adequate debate.

The new regulations will reduce the amount by 20% of risk equalisation that new Bupa owners, Quinn Healthcare, will pay the VHI this year in compensation for the State-insurance company having an older customer base.

That could be worth up €20 million to the Fermoy-based insurance company.

In addition, the new proposals will also lead to VHI losing its derogation in relation to solvency. This will mean that it will have to find at least €100 million in reserves.

The Bill was introduced in the Dáil by junior minister Tim O’Malley yesterday, who said that it would promote competition and protecting community rating.

“The Government is satisfied that the changes being made to the scheme are in the best interests of consumers and the development of the market.”

Opposition parties expressed outrage at the fact that only 25 minutes was allotted for the debate.

Liam Twomey of Fine Gael said the regulations would “give patients a harsh dose of PD medicine. It is clear from the Minister’s press statement that the purpose of this measure is to privatise the VHI. It has nothing to do with mutualisation. That is a red herring intended to win over the VHI’s 1.2 million subscribers,” he claimed.

He claimed that the VHI would be loaded with a potential loan of €1 billion when it lost its solvency derogation in 2008.

Liz McManus of Labour excoriated the Government’s handling of the matter.

“The overweening arrogance of the members of the Government is such that they thought they could pass this measure without debate. We have had a miserly concession of five minutes speaking time for each Deputy, which is not sufficient to deal with this very complex issue,” she said.

Caoimhghín Ó Caoláin of Sinn Féin described the 25 minutes allotted to debate as an “outrageous insult” to the Dáil and to the people.

Joe Higgins of the Socialist Party argued: “Patients are being treated as if they were sacks of spuds, commodities to be traded on the market, rather than people to be cared for, whose health needs are provided for.”