The Insurance Ireland Health Insurance Council, which includes the State’s four main insurers, have expressed their frustration  that the Government has reneged on the commitment made in the Dail last July to amend legislation to ensure that new charges for public beds do not exceed €30m next year.  The four health insurers were advised by letter at close of business on Friday that these rates are to be left unchanged and, as a result, privately insured patients will now be subject to a charge of up to €852 per night for occupying a public bed in a public hospital. 

The Health Insurance Council highlighted that an unequivocal commitment was made both in the Dail and to the Council that the charge that the amount to be raised in 2014 will be €30 million  and that the health insurers and Department  would engage in independent assessment of the charges involved to ensure that €30 million was the maximum amount to be collected. At that time, the Minister said that, should the independent assessment show that amounts over and above €30 million being collected that the rates outlined in the Health Insurance (Amendment) Act would be amended.  This commitment was revoked in the latest letter received from the Department of Health on Friday. 

According to Kevin Thompson, CEO, Insurance Ireland “The current rates will raise an additional €130 million* for the HSE rather than the €30 million announced by the Minister in July 2013 and published in Budget 2014. That is an additional €100 million over and above what was planned for and is completely unacceptable. These charges come into effect on the 1st January 2014.  We have always been opposed to the introduction of this charge for all beds in public hospitals as it is in effect double taxation of those with private health insurance.  The reneging on the commitment to raise a maximum of €30 million via this charge illustrates the fact that the Government are dipping into private health insurance customers’ pockets to balance the health budget. ” 

The cumulative impact of these new charges and the decision in the Budget to significantly curtail tax relief on premiums means that the Government is now imposing an additional €300 million charge on the insured population.  Those who have taken responsibility for their health care by paying for insurance in very challenging times are now being punished. The significant budgetary problems in our health system will not be solved by constantly  dipping into the pockets of the declining number who , against all the odds, continue to pay their health insurance.  Each person who gives up their private health insurance ceases to contribute to the health system and instead becomes a cost to it.  This move can only increase the numbers of customers leaving the health insurance market, jeopardising the public and private health systems as a result.”

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* based on Health Insurance Authority figures