'Too early to say' if those who have health cover will get refunds: VHI

Health Minister Simon Harris. Photo: Gareth Chaney, Collins

Charlie Weston Twitter Email

March 26 2020 02:30 AM

Health insurers have said it is too early to say if people with cover will be refunded premiums due to the State taking over the private hospitals.

The Government has said the private hospitals will become part of the public system for the duration of the coronavirus pandemic. This will effectively render private health insurance useless.

Asked if this would mean the two million people with health cover will get refunds, Vhi said it was seeking more detail on the takeover of the 19 private hospitals and clinics.

"This has just been announced, so clearly it is too early for us to understand the implications and we will be engaging with Government over the next couple of days to see how this will be implemented," a spokeswoman said.

Health insurance expert Dermot Goode, of TotalHealthCover.ie, said it was unclear at the moment whether the State would continue to collect the levy on private health cover, which amounts to €445 per adult for cover in public and private hospitals.

If the State continues to collect this levy it will make it difficult for insurers to refund members.

It was also unclear if some procedures, such as cancer treatment, for those with health insurance would continue to be carried out in private hospitals after the State takeover, Mr Goode added.

He also said insurers were seeking to find out if the State would treat private hospitals as being part of the public system, and charge €800 a night as happens when someone with health cover is treated privately in a public hospital.

Mr Goode warned that people who cancel a policy mid-term will be hit with cancellation fees.

He advised people to not make any changes to their health insurance policies.

Once the pandemic has gone there will be a huge backlog due to the number of non-essential procedures and surgeries that have been postponed.

"At the end of all this, people getting non-essential surgery and diagnostics done will be using private health insurance to get it done quickly. I would not be making any changes to my cover for now," Mr Goode said.

The takeover of the private hospitals will mean 2,000 beds, nine laboratories and 8,000 staff being drafted into the public system.

Health Minister Simon Harris said on Tuesday "there can be no room for public versus private" when responding to the Covid-19 crisis.

"We must of course have equality of treatment, patients with this virus will be treated for free, and they'll be treated as part of a single, national hospital service," he said.

"For the duration of this crisis the State will take control of all private hospital facilities and manage all of the resources for the common benefit of all of our people. There can be no room for public versus private when it comes to pandemic."

Gerry Hassett, of Insurance Ireland, speaking on behalf of Vhi, Laya and Irish Life Health, said health insurers will work with the Government and the private hospitals to play a constructive role in supporting the public system during the crisis.

He said insurers are due to discuss how the private hospital takeover will work with the Department of Health and the Health Insurance Authority.

The deal is likely to see the cancellation or postponement of a large number of non-essential elective surgeries in private hospitals.