ESRI urges review of universal health insurance model

The Economic and Social Research Institute (ESRI) has urged the Government to review its proposed model of universal health insurance given its potential cost implications.

In a report published today it says the model of universal health insurance set out by the Government in a White Paper last year would increase overall Irish healthcare expenditure by at least 3.5 per cent and as much as 11 per cent.

The scale of the increase would depend on what would be covered under different “baskets” of services that could be offered to patients.

“We find that the White Paper model of universal health insurance would raise the level of healthcare expenditure, partially by delivering more services to address unmet need but also, and to a significant extent, because of the intrinsic additional costs that arise when healthcare financing is channelled through insurance companies , which require market margins,” the ESRI writes.

It says the overall level of Irish healthcare expenditure, which it maintains stood at €19 billion in 2013, would increase by between €666 million and €1.38 billion if the universal health insurance system covered hospital, mental health and GP care. However this would rise to between €780 million and €1.59 billion if it also covered other primary care services. If prescribed medication is also included in the cover the additional costs could range from €1.04 billion to €2.05 billion.

The report also says that under the Government’s proposals for universal health insurance taxation would continue to pay for up to 70 per cent of Irish healthcare expenditure. Taxation would have to finance subsidies for insurance premiums for people on low incomes and for funding services that were not covered by universal health insurance.