Reilly rejects blame for rising premiums
Dr Reilly said the argument could not be true because there was one pot of money that went “in a circle” around the insurance companies.
Speaking at a healthcare conference in Dublin, Dr Reilly said those insurance companies with more older people on their books would get the money transferred to them.
Referring to Laya healthcare, which called on the minister to address the price spiral that has forced a record 64,000 people to drop their cover last year, Dr Reilly said the company would receive more of the levy if it had more older members.
He said Laya and a lot of the younger insurance companies had been focusing on younger age groups that were more profitable because they did not get sick as often as older people.
He also rejected a claim by health insurers that plans to charge private patients more for using public hospitals would increase premiums by 25%.
Dr Reilly said the charge was being introduced in a graded fashion over three to four years.
“If we were to charge the full cost of private care in our public hospitals it would break the insurance industry,” he said.
There was a major and unacceptable problem in the public hospital system because it was not reimbursed for every two out of five private in-patients it treated every year.
“I think it is absolutely outrageous that a consultant is paid a private fee for looking after a private patient in a public hospital while the hospital cannot get paid because of the designation of a bed.”
He had emphasised to insurers the absolute necessity to do everything possible to keep premiums at a level where it was affordable for as many people as possible.
Dr Reilly has told the VHI to produce a clinical audit so that physicians were challenged for carrying out tests and procedures.
He said the insurer had to look at the cost of procedures, some of which used to take two hours but now take 20 minutes.
He said hospitals should only charge per procedure, not for the day, a situation that would allow the most efficient to thrive.
Dr Reilly said he planned to establish a patient safety agency on an administrative basis this year.
A report on the establishment of hospital groups will be submitted to Government shortly and a framework document for smaller hospitals would be published in the next week or so.
“The smaller hospital framework demonstrates clearly that the future of these hospitals is secure,” said Dr Reilly. “No acute hospital will close.”
It's the fifth VHI increase in two years - and they wanted to hike it this time by 11 per cent.
— Declan Ferry (@Declanferry) January 30, 2013
Reilly failure to tackle health insurance costs evidenced by #VHI hike @BillyKelleherTD http://t.co/mQR6LoJY
— Fianna Fáil (@fiannafailparty) January 30, 2013
Ah sure go on, fla us altogether :-( VHI confirms average premiums hike of 6% | BreakingNews.ie: http://t.co/9rc3w957 via @breakingnewsie
— John O'Regan (@jorcobh) January 30, 2013
