Review to examine costs of health insurance
Minister James Reilly met with the three companies last night — a week after they warned they may be forced to increase premiums by up to 50% if he abolishes, as stated in the budget, the existing subsidy for private medical treatment in public hospitals.
It was agreed that a health insurance consultative forum will be established to examine how costs in the sector can be reduced.
It is understood that historical pricing may be addressed at the forum, as well as the amount of hospital stay required for particular treatments. It is also hoped efforts will be made to accelerate the amount of time it takes for health insurers to pay hospitals.
A spokesman for the Dr Reilly said: “In recent days the issue of a possible rise in costs of health insurance premiums has been widely reported.
“Last night, Minister Reilly made clear to the health insurers that he believes significant savings can still be made, the effect of which can be to minimise the need for such increases”.
“The health insurance consultative forum will also provide the participating parties with an opportunity to consider certain issues related to Government moves to implement its policy of universal health insurance.
“The Government has made clear that the future delivery of health services under VHI, will require competing insurance companies driving efficient, cost effective delivery of high quality health care”.
The decision was taken after a meeting involving; Dr James Reilly, Department of Health officials and representatives from VHI, Quinn Health Care and Aviva Health.
Last week, Dr Reilly announced that he had asked international experts Milliman to work with the VHI to target ways of reducing claim costs.
It emerged yesterday that the review will begin in the New Year.
A VHI spokesman said they were happy to cooperate with Milliman where they can.
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