Higher charges for private beds set to push up insurance premiums

PATIENTS face increased charges for private beds in public hospitals and a likely hike in private health insurance premiums as a result of measures contained in the national recovery plan.

A €1.4 billion cut in the health budget between now and 2014 will include savings of approximately €750 million in 2011 including:

* €444m in procurement [buying of goods and services by the Health Service Executive (HSE)] and demand-led schemes such as the medical card scheme and the drug refund scheme

* €7.5m in administration

* €36m in funding cuts to the Department of Health for its agencies including voluntary bodies and in cuts to the office of the Minister for Children

* €259m payroll savings as a result of the reduction in staff numbers following the HSE voluntary redundancy and early retirement schemes as well as cuts in overtime, agency staff, on-call and other non-core pay areas.

The plan says the Government will seek to ensure frontline health services are “protected from cutbacks” but it says significant savings must be found for major drivers of spending including free or subsidised medical care and treatment.

The Government is to set a baseline price for drugs available under the general medical card scheme (GMS) and where higher prices are charged, the patient must make up the difference.

Fees paid to doctors, dentists and pharmacists for services provided under the GMS are to be reduced.

The plan also envisages the extension of the Fair Deal scheme model to the community. In other words, those who opt for alternative care rather than entering a nursing home will make co-payments along the lines of the Fair Deal scheme, ie 80% of assessable income and 5% of the value of any assets per annum.

Other changes include the introduction of “graded benefits” for patients who may not be entitled to a medical card or a GP visit card.

Health Minister Mary Harney said yesterday that they were looking at “more graduated eligibility in relation to many of our schemes”.

“Obviously our eligibility criteria are not clear, they need to be set down in law. We are at an advanced stage of bringing a memorandum to Government in relation to that for greater clarity. I mean we have the medical card and we have the doctor only card and we have nothing else, other people have to depend on the Drug Payment Scheme, we want to bring greater rationalisation to all of that within the envelope of money that’s available.”

The plan envisages spending on health dropping from €14.8bn this year to €13.7bn in 2013 and 2014. This represents a 8% cut over the lifetime of the recovery plan. Capital expenditure set at €399m in 2011 will rise to €400m by 2014.