Cowen Publishes Policy on Private Health Insurance
99 Nov 1999
Arising from the commitment contained in the Government's Action Programme for the New Millennium, Mr. Brian Cowen, T.D., Minister for Health and Children, today launched the White Paper on Private Health Insurance. The White Paper represents the first ever Government statement of policy on the sector since voluntary health insurance was formally instituted over forty years ago. An estimated 42&percent; of the Irish population have private health insurance and health insurers currently pay out approximately £350 million in claims.
Health insurance systems internationally are being subject to review and reform with a view to providing high quality healthcare on a financially sustainable basis. In pursuing this objective, Governments are engaged in encouraging competition, while safeguarding the established solidarity-based dimension on which their respective systems are built. These challenges are no less evident in the system here and are addressed by the Government in the White Paper.
Minister Cowen said that in the White Paper "the Government's aim is to provide a supportive and developmental framework, consistent with the maintenance of the core values of our voluntary health insurance system - community rating, open enrolment and lifetime cover". He said that the Government's intention is "to play to the strengths of the system already established while also introducing significant change".
At the same time, the Government's commitment to equity of access to acute hospital care between public and private patients was emphasised by Minister Cowen who said that "the Government make it clear in the White Paper that their primary concern in the administration of the public health services is to serve the needs and interests of the public patient". He pointed out that the Government will continue with their programme of major investment in public health services, directed at reducing waiting times, expanding specialised services in the cardiac and cancer treatment areas and improving facilities and services generally.
Minister Cowen noted that the proposals contained in the White Paper involved significant change across fundamental areas of market regulation, structures and relationships. He identified one of the main messages of the White Paper as being that change in these areas "should reflect the best interests of consumers/patients and be responsive to the demands of a modern, changing, market which is characterised by service, quality and efficiency".
In the White Paper, the Government set out improvements to, the method of community rating, the arrangements for risk equalisation, the basis for public hospital charges to private patients, the structure of the Voluntary Health Insurance Board, the scope for product development and the focus of consumer information. The Government are also proceeding with the establishment of the Health Insurance Authority to undertake direct regulatory functions currently discharged by the Minister. Other important areas of action relate to improving the delivery of private care through hospital accreditation, availability of wider data on hospital activity and technology assessment, as well as promoting wide-ranging dialogue between interested parties through a Private Healthcare Forum.
Minister Cowen set out an "Action Agenda" to implement the White Paper proposals, which will involve the preparation of legislation to amend the Health Insurance Act, 1994 and to change the corporate status of the Voluntary Health Insurance Board. He concluded by stating that the White Paper represented "a balanced approach to the effective organisation and development of our market".
A summary of the key proposals contained in the White Paper and the document details (including a link to a PDF version) are available.
