VHI to pay €100m to HSE by end of the year

VHI will hand over €100m to the health service by the end of this month as part of a new Government deal to fast-track the repayment of fees to hospitals looking after private patients.

Health Minister Leo Varadkar confirmed talks around the plan are in their final stages after revealing taxpayers are losing out on as a much as €315m every year because of insurers’ failure to return funds in a timely fashion.

As part of the current health service system, private patients can be treated in public hospitals depending on the procedures required, and if they are more convenient for the patient than private hospital alternatives.

In this situation, the doctor and hospital treating the patient are required to reclaim the cost of the care from the individual’s private health insurer to guarantee the taxpayer does not have to cover a private company’s expense.

While the money is eventually repaid, a problem exists whereby insurers take months to transfer money back due in part to claims not being properly filled out by medics.

Under a new scheme agreed in principle between the HSE and the Health Insurance Council, doctors, hospitals, and insurers will from now on have to send claims electronically to ensure that the money is returned on time.