Health levy ‘forcing’ insurers to hike prices
In a lengthy cross-party health committee meeting, senior officials from VHI, Glo Health, Laya Healthcare, and Aviva Health outlined the stark situation for the public and the minister.
The officials claimed Dr Reilly’s “mishandling” of the controversial insurance levy — which will see increases of up to €65 per private insurance holder from the end of March — is forcing people out of the insurance market.
And they said the minister’s plans to charge private patients more for using public beds will cause another upsurge in prices at a time when 10,000 people were leaving the sector every three months.
Laya Healthcare managing director Donal Clancy said the combined price rises would cost firms €250m in three years. “It will be game over,” he said.
Aviva Health chairman Brian Dunne asked how the State would cope with a sudden increase in people attending overstretched public services if the health insurer’s claims come true.
He said that if costs were to be kept down alternatives to hospital care for people with private health insurance may need to be considered. This, he said, included new approaches to certain unspecified procedures could just as easily take place in primary care settings.
VHI chief executive John O’Dwyer said any increase in charges planned by Dr Reilly — intended to improve access for public patients to public hospitals — will lead customers to question the affordability of health insurance.
His counterpart at Glo Health, Jim Dowdall, drew comparisons with the end of the Celtic Tiger and the current debate, saying that ignoring warning signs over the impact of financial moves was not wise.
In a separate presentation Department of Health deputy secretary, Dr Fergal Lynch, said the minister was “concerned about the sustainability of the insurance market as a whole”.
Health insurers are open to charging smokers more for coverage in a bid to help fight Ireland’s tobacco addiction.
Under questioning from Independent senator and consultant oncologist Prof John Crown, insurers said the move could be considered.
Prof Crown had asked the committee whether it was possible to “put a premium on smoking”.
This means smokers would pay more for their insurance. He said the move should be considered as smoking harmed health, and so increases costs for all people with insurance. “You cannot choose to be obese or not obese, to be young or old or to have the right gene pool, but you can choose whether to smoke or not.”
If the Department of Health made the move possible, insurers said they would be in favour.
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