Incoming health minister urged to tackle rising costs

IRELAND’S next health minister has been urged to prevent insurers from bleeding people dry after the latest in a series of painful premium hikes were imposed on patients.

Since the start of 2010, when the economic crisis has been at its most crippling, Ireland’s three health insurers VHI, Quinn Healthcare and Aviva, have repeatedly raised their coverage costs.

The latest move came on Monday when Quinn told its estimated 500,000 customers fees will rise 6% in just four weeks time — the second price hike by the firm since the start of January.

Over the past 14 months Quinn has increased prices on three separate occasions — including a 15% average rise in January 2010 — a move mirrored by rival firms VHI and Aviva, with all three claiming the premium hikes are the result of the government’s health levy.

The situation is forcing a growing number of people to take the potentially dangerous step of scrapping their health insurance coverage completely because they can no longer afford to pay.

And as a result, Consumer Association of Ireland chief executive, Dermot Jewell, has pleaded with the incoming health minister to make resolving the issue a genuine priority.

“The new Health Minister, whoever he or she may be, will have to address this for no other reason than because the pressure this is placing on the health service is escalating so much even before an appointment has been made.

“VHI has wiped out long-time contributing customers, if that’s what they want to call them, the others have also raised costs — people just cannot afford these increasing fees.

“The companies say they would reduce costs if the health levy wasn’t there, but reducing premiums is not something consumers would remember in their lifetime.

“Cutting costs is as rare as hens’ teeth. Costs are always passed on, and the new Health Minister needs to address this,” he said.

The latest insurance price hikes controversy comes just days after a long-running private row which risks hitting people even further in their pockets erupted again between VHI and the Department of Health.

The row centres on the partially published departmental Milliman Review, which has recommended a “US-style” health insurance system to cut VHI costs.

VHI says this system could lead to further premium rises and mean the firm will be able to refuse to cover patients for certain procedures — an interpretation the department denies.