Universal Health Insurance: Report found policy would cost four times original predicted price
A 22-page KPMG analysis of the plan to reform the health service, commissioned by State watchdog the Health Insurance Authority, drew the conclusion after examining the likely knock-on effect of introducing the measure.
Under plans championed by former health minister James Reilly and included in the Coalition’s programme for government, the existing two-tier public-private health service was to be replaced with a single-tier system where everyone in the State would have health insurance through the Government.
It had been hoped the move would improve equality in the system and ensure equal access to services as people paying companies for private health insurance would not be at any advantage from people Dr Reilly had suggested last year would be asked to pay roughly €900 for the new supports.
However, according to the KPMG analysis — received by Health Minister Leo Varadkar on September 22 — if the plan was introduced the true figure would have been as high as €3,641 for adults and as much as €896 for children.
The KPMG examination looked at three ‘baskets’ of care to be put in place by UHI and outlined in the Government’s white paper on the topic, published in early summer 2014.
They included one offering general services, a second offering general services plus primary care, and a third offering general services, primary care, and drug costs.
It found that, contrary to the €900 figure outlined by the Department of Health before Mr Varadkar took up his position last year, the actual cost of UHI was as much as four times higher.
The report said the services under the first ‘basket’ of care would cost each person signing up to the system as much as €2,565, students €603, and children €773.
For those receiving the second basket’s services, the figures would be €2,948, €696, and €896, respectively, while the rates for the third basket — the most expensive as it covered the most ground — would reach €3,641, €899, and €896, respectively.
While emphasising that the findings are based on “a point in time” and may be subject to change, the KPMG researchers also noted that “we expect the impact of providing health services in an insured environment will add an additional loading of 12% to underlying claims costs”.
It also said “no allowance has been made for the impact of other revenue sources such as tax revenue”.
