Health insurance and the perilous state of the health system

eoineen

Given the current debacle over risk-equalisation, the health insurance market and an impending election, consider this: abolish the VHI.

Why should a semi-state company with special status within the EU private insurance market be paying through the snout for state health services. The average VHI premium, according to a recent analysis here, is €435. They have maybe 0.5 million customers and are constantly making losses in the tens of millions, despite so-called competition. What if this €217,500,000 was reinvested back into the health system? I know that just about covers the cost of Brendan Drumm's paper clips but why do we still have the state running health insurance?

InFront

Well, lets not say "abolish" but they shouldn't be given any special treatment, I say throw them out on their ear and let them survive in the real world. BUPA and Vivas can operate without special favour, why not the VHI?

Also, the VHI have now expanded into other markets (such as travel insurance) and should technically no longer be exempt from EU Legislation in relation to solvency and prudential regulation... and they've given themselves until 2012 or something to change! They were only initally granted this special treatment on grounds that they only provided private health insurance, what they are doing is not competitive, not good for consumers (patients, really), and ultimately not even good for the VHI.

Vivas have claimed they are going to bring the Government(?) to court because of the Competition Authority report... But isn't Charlie McCreevey doing this already? I haven't heard anything on it in a while

LostinBlanch

I find myself conflicted (to use that awful phrase) on this issue. As someone who has consistently been of an anti thatcherist mindset I would normally expect myself to side with risk equalisation. But seeing the way that this government has consistently taken the piss leaving us poor taxpayers to cough up to clean their messes, enough is enough.

It's time to look seriously at other systems like the Australian one which allows risk equalisation and competition. Or else we could just cut the ropes and leave the VHI to sink. Seeing as they obviously will not change their lazy, money gubbing ways without being forced to. If such a move would bring proper competition into the market without jettisoning older subscribers I would be in favour.

One thing I would do, is to seriously beef up the competition authority powers and resources and allow them to have similiar powers to similar bodies in the US for example. There they have the FBI investigate these breaches of competition law under anti racketeering statutes. Won't happen here as FF & PDs have too much invested in not clearing up anticompetitive (semi) monopolies. They will only begin to "introduce" competition when it will mean that prices have to go up a la introduccing "competition" into the electricity generating market. "Oh prices are too low so we have to raise them to encourage competitors in." And exactly how many private consumers have accounts with other electricity producers? So we have paid out all those extra price rises for what exactly? Now when I say extra I mean above inflation rate.

Don't even get me onto Eircon or Bord Gais.

Bottom line I wouldn't trust this "government" to f*ck things up and make it 1000 times worse than it already is.

Zambia

Health insurance annoys me when I lived in Dublin I had health insurance.

I assume you take out health insurance because the state health system would not amply cover you if you got sick/Injured.

So when your employer gives you health insurance the goverment sees fit to charge you BIK on the health insurance you employers are paying?

Personnally I think any money you spend on health insurance should be tax free and in the form of no BIK or tax refund.

Plus VHI should stand on its own to feet.

eoineen

LostinBlanch wrote:

I find myself conflicted (to use that awful phrase) on this issue. As someone who has consistently been of an anti thatcherist mindset I would normally expect myself to side with risk equalisation.

But this is precisely the point LostIn: this government claims that they like competition, they favour the market over state intervention and even claim to support a Competition Authority but don't give it any teeth.

Just who is protecting whom here?

Private health insurance (even as a BUPA / Quinn) subscriber, makes no sense in a country with a health service being run into the ground anyway. I suppose my question was, do you think an electorate would go for a proposal to abolish the VHI and reinvest public money back into a reformed HSE?