The Minister for Health James Reilly has said there will be ample opportunity over the coming months to address the concerns raised by the Department of Public Expenditure and Reform and the Department of Finance about his controversial proposals to introduce universal health insurance.
Speaking in advance of a meeting of senior ministers on the proposals today he said: “I think there’s no doubt that there is always going to be concern particularly in Finance and the Department of Public Expenditure around the cost of any initiative but I’m very pleased to say that we’re bringing this to the health committee of Cabinet today and we’re going to discuss it and then we’ll have ample opportunity in time over the following months to address all the issues and concerns that are raised.”
Dr Reilly said under no circumstances should his proposal for a new single -tier health system, under the universal health insurance proposals, cost more than the current two-tier model of public and private care which it would replace.
“Bear in mind how inefficient our current system is. Bear in mind that all of this is leading to the great reform of universal health insurance, that’s the key goal.”
The Irish Times reported earlier this month that the Department of Public Expenditure and Reform had argued that Dr Reilly's proposals for universal health insurance could threaten the financial stability of the State.
The Department of Public Expenditure and Reform also suggested that the cost of the standard package of health insurance under Dr Reilly’s proposals - which everyone in the country will have to have - could cost €1,672.
The Department of Health has strongly rejected the claims made by the Department of Public Expenditure and Reform.
Under the proposals the State would pay the insurance premium for lower income groups and subsidise the cost for others. However the income thresholds at which such payments and subsidies would apply have not been set out to date.
The Irish Times reported last week that under Dr Reilly's proposals people who refused to pay for the standard package of health insurance would face having the cost deducted from their earnings or benefits.
The Opposition has criticised Dr Reilly’s proposals as representing a major tax hike.
The version of the draft white paper on universal health insurance to be considered by the cabinet sub-committee on health today is expected to contain provision for a cap on health expenditure under the reform proposals. The absence of any such cap was raised as a serious concern by the Department of Finance.
Asked why it was taking so long to get firm details on the plan, Dr Reilly said:
“This is the biggest reform that the Government is going to undertake of anything and I mean we’re changing the whole system... It’s a massive piece of work.”
He added: “We said that we wouldn’t get it in one term of Government, it would take two terms of government...we haven’t determined the basket of services yet, that will require public consultation, that requires getting the price and cost of everything way down from where it is right now so that people get the full suite of services that they require and need.
Asked about figures in the media suggesting the basic package of insurance could cost € 1,672 per year, Dr Reilly said:
“There are figures being bandied about on what basis? The reality here is that we know that we are going to fully subsidise those who are on the medical card system, the lowest 40 per cent. We always intended heavily subsidising the next 25 to 30 per cent of people, so to be talking about what it’ll cost now when we have not determined the basket when we have not progressed the underlying cost issues...seems to me to be a bit premature.”
