Insurance Ireland Health Insurance Council calls on Minister for Health to amend legislation on Public Beds

The Insurance Ireland Health Insurance Council, which includes the State’s four main insurers, called on the Minister for Health, James Reilly TD and Government to fulfil a promise made in the Dail last July to amend legislation to ensure that new charges for public beds do not exceed €30m next year.  

According to the Council, 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 and if left unchanged they will result in private health insurance customers again having to pay more for their health insurance.

Kevin Thompson, CEO, Insurance Ireland said, “The Health Insurance Council is opposed to the introduction of charges for all beds in public hospitals as it is in effect double taxation. Private patients will not receive any additional services and will be charged substantially more than uninsured patients accessing the same service. Our view has always been that this legislation is unfair. We are now calling on the Minister to uphold his commitment.” 

When he introduced the legislation to give effect to the public bed charges in July, the Minister categorically stated that he intended to raise no more than €30 million in hospital revenue from public bed redesignation in 2014 and he set out his proposed charges in the Health Amendment Bill 2013. In the light of disparities between the Department of Health’s estimates and those of the insurers on the level of charges required to raise €30 million, independent assessments were carried out by Deloitte and by the Health Insurance Authority. The independent assessments which the Minister asked for validated the health insurance industry’s position.

On the 16th July during a Committee Stage debate on the Health Amendment Bill 2013 the Minister acknowledged the disparities in estimates and committed to amending the legislation following independent review, to ensure that the new charge would raise €30 million only in 2014. 

He said, “The deferral of the implementation date of the new charge will allow time to assure the private health insurers that these new charges will only raise the intended €30 million in 2014 in line with a phased approval, by carrying out an independent assessment of private patient activity and charges. If it is necessary, I will amend the rates in the autumn by amending legislation to deliver the €30 million. I, therefore, ask Deputies to support this amendment.”

Kevin Thompson, CEO, Insurance Ireland concluded by saying “We are now calling on the Minister to do just this as a matter of urgency . We have provided the correct rates to enable the Minister to do this. It is in everyone’s interest that a viable public and private health system operate as they are inextricably linked”.   

Ends

      * based on Health Insurance Authority figures