The Minister for Health, Mr Micheál Martin, this evening said the 10.4 per cent increase in health spending announced in the Estimates "underlined the Government's commitment to the service in difficult fiscal times".
Mr Martin announced an additional €891 million for the sector, bringing the Government's total spend on health for 2004 to an historic high of €10.4 billion.
However with the majority of additional money going to fund pay awards, the public can expect steep increases in charges for healthcare and medicines.
Accident and emergency charges will go up by over 10 per cent to €45 per consultation. The €40 per night hospital bed charge for uninsured public patients will also increase to €45.
The Minister announced a 15 per cent increase in the amount charged to health insurers for the use of private beds in public hospitals. This is likely to lead health insurers such as the VHI and BUPA to charge higher premiums.
Mr Martin also announced an increase in the threshold at which at the drug refund scheme kicks in. The threshold which was increased to €70 last year will go up a further €8 to €78.
Over €500 million of the additional spending will go to fund pay awards, approximately €200 million of which is accounted for by benchmarking.
Part of the extra money will also go to finance an increased take-up of the medical card scheme.
Mr Martin said: "Having secured an increase of 10 per cent, which is almost double the overall Government increase in spending; my challenge now is to manage this budget in the best interest of patient care".
"Sound management of the economy by the Government in tandem with our commitment to the reform will deliver a better health system," he added.
He said some of the 2004 health spend would go towards initial implementation of the controversial Hanley report. However he would not be drawn on the specifics.
