Reduced health cover a growing ‘time bomb’

Struggling health insurers are increasingly offering restricted cover deals which, while cheaper in the short term, are a “time bomb” for unsuspecting customers, it has been claimed.

The National Healthcare Conference will hear today that there is a growing trend within the sector for firms to offer the plans in the scramble to ensure customers keep their insurance coverage.

However, coming a day after VHI’s annual report showed yet more bad news for the sector, the conference will be told that far from the better value offers claimed, the deals are a “time bomb” for patients.

Speaking at the major meeting, leading independent health insurance expert Dermot Goode will explain that the small print of these restricted cover plans means the customer themselves are responsible for significant expenses.

And while they may have signed up to the restricted plans to save money, Mr Goode will state that this hidden problem could potentially leave people facing thousands of euro worth of unplanned bills.

The claim comes a day after it emerged that VHI is still €50m short of financial safety and will have to find €250m from either the State, rising premiums or a private investor, if it is to meet new Central Bank criteria.

Despite recording a surplus for the first time since 2007, VHI’s annual report for 2011, released yesterday, will make for far from promising reading for either its board or its 1.2m customers.

According to the financial report, last year VHI recorded a €7.4m surplus, up significantly from a €3m loss in 2010.

However, despite the improved financial position — based mainly on highly controversial premium price hikes of up to 45% imposed on customers — the health insurer continues to be facing serious financial problems.

Last year, 117,000 people cancelled their coverage and over 200,000 more reducing their plans.

The issue is expected to be raised by Mr Goode at the National Healthcare Conference today.

Among the other speakers at the conference, will be Peter Smith, professor of health policy at the Imperial College London and health advisor to the IMF.

More information at www.nationalhealthcare.ie.

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