Harney is pushing people into private care

HEALTH Minister Mary Harney was accused yesterday of making people more afraid of using the public hospital system so that they would take out private health insurance.

The charge was made by consultant neurologist, Dr Colin Doherty, who said there was a growing fear that Ms Harney was not going to improve the public health system — that it was going to deteriorate.

“You need to create more fear to make people pay those extra premiums to keep the level of private health take-up at 50%,” said Dr Doherty on RTÉ radio.

He also argued that improving access to services in the public health system was incompatible with encouraging people to use private health care.

Meanwhile, VHI chairman and chief executive Vincent Sheridan said they would be lobbying very hard to have the 20% reduction in risk equalisation payments reversed.

Consumers’ Association chief executive Dermott Jewell said there was a lot of concern, particularly among older people about the development.

On the one hand, the VHI was saying premiums would inevitably increase while, on the other, the minister was saying she would not allow that to happen, and, if necessary would inject more money into the company.

“At the end of the day, it will be the taxpayer who will be paying more money in one way or another,” said Mr Jewell, who said there was a need for far more clarity on the issue.

And while he acknowledged that both the private and public health system needed to be improved, it would be “horrendous” if we went the way of America where only the well off could afford good healthcare.

Irish Patients Association chairman, Stephen McMahon, said the organisation was anxious to ensure that the core package offered with every healthcare plan ensured patients received the clinical care they needed.

“We have elderly people who would be willing to scrub floors to maintain the level of VHI cover they have at the moment. They would be worried about increased costs,” he pointed out.

Quinn Healthcare, which has taken over BUPA Ireland, has expressed disappointment that the regulations do not go far enough.

General manager, Colin Morgan, said the dominant position of VHI would still hinder competition.

“The changes in the risk equalisation scheme do not go far enough in creating an open and competitive market,” he said yesterday.

Mr Morgan said the company was considering its position and would not rule out taking legal action.

Vivas said they wanted the risk equalisation scheme to be suspended until the reforms were fully implemented.

“It would be a nonsense to ask competitors to start subsidising the VHI, the dominant player in the market, while the future structure and regulation of the company is under discussion,” said Vivas chief executive, Oliver Tatton.

Firm reaction: what they said

Reaction from medical insurance providers.

Proposals will seriously undermine community rating and create the prospect of large price increases for health insurance in Ireland in the longer term.

Disappointed with 20% risk equalisation scheme reduction. Does not go anywhere close to levelling the playing pitch in the market.

Until the reforms are fully implemented all risk equalisation payments should be suspended.

A spokeswoman said they did not believe they should be commenting on a situation that they were no longer involved in.