Health insurance mess continues....

[BodyofEvidence]

And so it rolls on
Over-60s get tax breaks to pay for health cover - National News, Frontpage - Independent.ie

Wouldnt, oh, I dont know, GIVING FREE MEDICAL CARE TO THE OVER 60'S be cheaper than this farrago? But, I suspect that Harney et al would be more than happy to have a private sector massive overrun in costs than a minor public sector one.

[kellsangel]

devise legislation which would underpin the principal of equal premiums within a company regardless of age, a principle which must be maintained.

VHI's solution is simple just encourage some of its older customers to flock to the competition.

This can be done by offering a bonus to do so

[Ronanr]

This will be very messy.

What about poor pensioners who perhaps pay no income tax?

How will they get their rebate?


And it will not go down well with the younger health insurance population either.

They will not see this as a chance to show "patriotic solidarity" with older folks, they will see it as themselves being gauged because the govt. cannot organise a health insurance system that works.

[Big Bobo]

Harney won't be happy until everyone has private health insurance (undermining public healthcare is the best possible way to achieve this)

[michael1965]

It depends on the details obviously, but I can't see it working. The level of the tax credit will have to be based on information supplied by VHI, so they'll be able to massage it (include their own inefficiencies) whatever way they want.

In fact, it sounds a lot like the old Risk equalisation system, except that the subsidies for the VHI will be coming from tax-payers, rather than the other insurers.

It also seems very pessimistic to be walking away from the Community Rating system, just because they don't have the confidence to be able to craft the legislation for it.

[BodyofEvidence]

Harney won't be happy until everyone has private health insurance (undermining public healthcare is the best possible way to achieve this)

Yep. Thats the way its going.

[Ronanr]

Yep. Thats the way its going.

You could make the opposite argument too- that these trends will eventually sink private health insurance for the elderly, and thus as the elderly consume more than 50% of healthcare resources, it will guarantee the primacy of the public health sector.

[patslatt]

It depends on the details obviously, but I can't see it working. The level of the tax credit will have to be based on information supplied by VHI, so they'll be able to massage it (include their own inefficiencies) whatever way they want.

In fact, it sounds a lot like the old Risk equalisation system, except that the subsidies for the VHI will be coming from tax-payers, rather than the other insurers.

It also seems very pessimistic to be walking away from the Community Rating system, just because they don't have the confidence to be able to craft the legislation for it.

Without delving into legalese,even with new legislation,it is my impression that the age difference equalisation levies under the Community Rating system could be subject to endless nitpicking legal appeal challenges under Irish constitutional property rights. A degree of arbitrariness in actuarial calculations and a limit to appeals are probably necessary for Community Rating,so an exception should be made for this in a constitutional amendment.

Community Rating is worth fighting for as it is based on the insurance principle of casting a wide net over contributors making the same payments in order to spread the risk over as large a population as possible and reduce the insurance cost for each insured person. If some insurers are allowed to profiteer on young contributors,there will be a series of new insurers entering the market in order to pick off the healthy youth population taking out insurance for the first time. Maybe VHI will set up a series of such companies, VHI I,VHI II etc.

[Aindriu]

You could make the opposite argument too- that these trends will eventually sink private health insurance for the elderly, and thus as the elderly consume more than 50% of healthcare resources, it will guarantee the primacy of the public health sector.

I disagree. What will happen (unless we make sure it doesn't) is that the elderly will be screwed full stop. Either they will have to pay through the nose for insurance or they won't get treated. Harney wants a US system here and it is about time people opened their eyes to that.