Prices up and benefits down – Kelleher criticises Reilly’s failure on health insurance

Fianna Fáil Spokesperson on Health Billy Kelleher has said the news that the VHI is simultaneously to reduce benefits on seven of its health plans, while increasing prices, clearly illustrates Minister Reilly’s failure to control health insurance costs.

“During the debate on the Health Insurance Amendment Act 2012 late last year, Minister Reilly made a clear promise that there would be a two-tier levy system for those with advanced and non-advanced cover, so that those with more basic cover wouldn’t end up having to subsidise the more advanced policy holders. However not one plan in place at the time qualified for the lower levy,” said Deputy Kelleher.

“So in order to provide plans that qualify for the lower levy, insurers are lowering the benefits and coverage provided. Yet even as cover goes down, we find that prices going up. This is a complete indictment of Minister Reilly’s handling of this issue.

“Approximately 200 people will give up their health insurance today and every day this year. Most of them will be the younger people required for a balanced market. Last week the government opposed a Dáil motion in which Fianna Fail put forward constructive ideas to alleviate the spiral in health insurance costs and encourage young people into the market.

“Instead we are left with higher prices and reduced cover,” Deputy Kelleher.