The number of people with Irish private health insurance has fallen by over 40,000 (almost 2% of those insured) in 2009 and the numbers forced to cancel their policies is likely to increase significantly in 2010 the Oireachtas Committee on Health and Children was told today.

In a country where there was confidence in the quality of the public health service,  the private health insurance market would be very small but in Ireland, with a population of 4.4 million, there are over 2.2 million covered.

The heads of the country's principle health insurance providers addressed the Committee to assess the state of the market and consider the future direction of the industry. CEO of VHI Healthcare, Jimmy Tolan, Donal Clancy, General Manager, Quinn Healthcare, Jim Dowdall, Managing Director, Hibernian Aviva Health and Jim Joyce, Chairman of the Health Insurance Authority all attended the Committee.

Jim Dowdall informed Committee members that younger people were now leaving the market as evidenced by the fact that 74% of those who have left Hibernian Aviva Health in the last twelve months have been under the age of forty. He also claimed that the health insurance levy had resulted in premiums increasing by 31%.

Both Hibernian Aviva and Quinn criticised the imposition of the health insurance levy claiming it was anti-competitive and reinforced the dominant position of VHI.

VHI Chief Executive, Jimmy Tolan told the meeting that its average healthcare costs per customer for this year will be €900 which is almost double it competitors. He also said that by the end of the year, it will have lost almost 120,000 customers and that in 2009 it will lose €170 million in meeting the healthcare needs of its customers over the age of sixty. He claimed that such losses were unsustainable in a highly competitive market.

Committee Chairman, Seán O’Fearghail TD said; “Over 2.2 million Irish people have made the choice to purchase private health insurance. It is clear that it is a complex area where a number of problems exist and some reform may well be needed.

All those who are in the business of providing health insurance must strive to make it as affordable and as inexpensive as possible, so that those who wish to purchase it are not priced out of the market.”

Finfacts Health Insurance Comparisons Page