VHI - the gift that keeps on taking

[DCon]

Yet another VHI price hike could be on the cards


The European Court of Justice ruled yesterday that Ireland was in breach of its EU obligations by exempting VHI Healthcare from being regulated by the Central Bank.

The court ruled that Ireland broke EU laws by allowing the VHI to operate outside normal insurance rules.

Under these, financial insurance companies have to put aside €4 out of every €10 in premiums so that they have enough reserves to cover the cost of a major increase in claims. But the VHI did not have to meet this target.

Being regulated will require the insurer to increase the amount of money it puts aside to cover medical claims in a move that will mean pumping an additional €330m into the company.

The ruling also means the State-owned health insurer will also likely have to stop offering special deals, such as free cover for children, experts said.



Insurance experts said yesterday that premiums are likely to rise again because the VHI's new funding requirements will have to come from taxpayers, higher premiums or the part-privatisation of the insurer.


"Any further upward pressure on premiums would simply push more people out of private healthcare and they would then have to rely on the public system which is already under pressure."



http://www.independent.ie/national-news/vhi-price-hike-expected-after-ruling-ends-special-treatment-2892414.html

[C. Flower]

The VHI is a class instrument in Ireland that has subsidised a more acceptable level of medical care for the middle classes at public expense and that has been a way of semi-privatising public facilities.

The EU objects from the right - and objects to the subsidy - not to the privatisation.

Same as with pensions, the Irish State has created a situation of haves and have nots, instead of treating people as equal citizens of the Republic.

[Baron von Biffo]

A more accurate title for this thread would have been - Competition/privatisation - the gift that keeps on taking.

Sometimes accuracy has to be sacrificed to push an agenda though. We should never pass up an opportunity to throw a dig at a state company. ;)

[DCon]

A more accurate title for this thread would have been - Competition/privatisation - the gift that keeps on taking.

Sometimes accuracy has to be sacrificed to push an agenda though. We should never pass up an opportunity to throw a dig at a state company. ;)

The State has chosen to mis-manage the company under European law.

That is the issue..

[Baron von Biffo]

The VHI is a class instrument in Ireland that has subsidised a more acceptable level of medical care for the middle classes at public expense and that has been a way of semi-privatising public facilities.

The EU objects from the right - and objects to the subsidy - not to the privatisation.

It's not quite so straightforward.

Private health insurance (PHI) patients don't get their care at the public expense. The reverse is true, PHI subsidises the public system.

There are two categories of PHI patient - The first group is those who are entitled to care by virtue of their PRSI history but who want faster access or more creature comforts while in hospital. The second is those who don't meet the PRSI based criteria, self employed, pre 1995 PS workers, returning migrants, some widows etc.

In both cases the full cost of care is charged to the insurer so there is no subsidy. In fact the first group are paying twice as the bill isn't discounted by the amount of their PRSI entitlement.

People in the second category would have to pay for their care even if they hadn't insurance so they are just making prudent provision.

If we were to take all the private patients out of public hospitals we would have to replace their fee income from the exchequer. We would also have to deal with a flight of top medical professionals from the lower pay and worse conditions that obtain in the public versus the private health sector.


Same as with pensions, the Irish State has created a situation of haves and have nots, instead of treating people as equal citizens of the Republic.

We have, broadly speaking, a 4 tier pensions system.

Top of the pile are the very wealthy Who can salt away massive sums and get tax relief for it.

Second is private sector workers with OAP and private pensions.

Third is those with just the OAP

Bottom of the heap are PS workers paying more into a pension scheme than they can ever realistically hope to get back.

[Baron von Biffo]

The State has chosen to mis-manage the company under European law.

That is the issue..

The EU law is designed to promote competition and privatisation. Whether the government imposed the solvency requirements on the VHI years ago or not it would still lead to higher premia.

It's the competition/privatisation agenda that is jacking up prices.

[DCon]

The EU law is designed to promote competition and privatisation. Whether the government imposed the solvency requirements on the VHI years ago or not it would still lead to higher premia.

It's the competition/privatisation agenda that is jacking up prices.

Undoubtedly. But that is what is what the voters in Ireland signed up for when joining and staying in the EU.

Our government continuing to "play it cute" will only last for so long.

Sean Quinn was allowed do that with Quinn Insurance. Anglo and INBS were also allowed do it and look where that got us

[Baron von Biffo]

Undoubtedly. But that is what is what the voters in Ireland signed up for when joining and staying in the EU.

Our government continuing to "play it cute" will only last for so long.

Sean Quinn was allowed do that with Quinn Insurance. Anglo and INBS were also allowed do it and look where that got us

It's 40 years ago now so my memory may be a bit faulty but my recollection is that when we were asked to join the 'Common Market' we were told it would be great for our farming and exports as well as giving us access to cheaper European goods and services.

I can't recall anything about dismantling public services to benefit the wallets of the wealthy.